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The Case Analysis of the Scandal of Enron | Li | International Journal of Business and Management

The Case Analysis of the Scandal of Enron

Yuhao Li


The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an
American energy company based in Houston, Texas, and the dissolution of Arthur Andersen, which was one of
the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy
reorganization in American history at that time, Enron undoubtedly is the biggest audit failure. It is ever the most
famous company in the world, but it also is one of companies which fell down too fast. In this paper, it analysis
the reason for this event in detail including the management, conflict of interest and accounting fraud.
Meanwhile, it makes analysis the moral responsibility From Individuals’ Angle and Corporation’s Angle.

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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