Enron ten years on: lessons learned

Hubert D Glover argues that insufficient internal controls are in place to prevent a repeat of an Enron-style collapse

On 3 December 2001, Enron declared bankruptcy and, echoing the attacks of 9/11, it was a commotion heard around the world. Enron – the darling of Wall Street and apparent symbol of endless prosperity – fell from grace. The company that was audited by the former Big Five firm, Arthur Andersen, had succumbed to the same greedy, self-wealth maximisation behaviour that was prevalent during the (US) Savings and Loan debacle of the 1980s and reminiscent of the patterns that led to the Crash of 1929.

Your free features:

  • Breaking news and expert analysis
  • Customisable daily newsletters
  • Six free CPD learning modules each year
  • Personalised CPD tracker
  • Top 75 Firms league tables
  • Regulatory changes
  • Hardman’s Tax Data

Sign up to Business & Accountancy Daily

Related Articles
Subscribe