A decade since the collapse of Enron,
Emile Woolf asks whether accounting rules actually facilitate fraud
We are approaching the tenth anniversary of the collapse of
Enron. Have the lessons been learnt? Enron was the US energy giant
that failed only 12 months after its share price rated it the seventh
largest corporation in the US. A handful of tenacious journalists
penetrated the miasma of filed data and revealed that the bulk of
its reported earnings were unmatched by cash. The share price collapsed
and bank support for its energy trades dried up. In late 2001, it
filed for bankruptcy.
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