Enron Corporation Article Example | Topics and Well Written Essays - 500 words

Enron Corporation - Article Example This proved to be a blatant violation of the accounting rules and eventually led to the mess that resulted in the bankruptcy of Enron and criminal prosecution of several Enron employees. Secondly, Mr. Kenneth Lay held a great deal of responsibility because he spearheaded the overstatement of Enron's income for four years prior to the bankruptcy. This effectively and efficiently led to his conviction for securities fraud, wire fraud and making false and misleading statements. Thirdly, Mr. David Duncan held some of the responsibility because he was aware that there were violations with regards to the rules of bookkeeping and was bounded by the ethics of his profession to report such violations. By not doing this, he was responsible to some degree for the final collapse of Enron. Fourthly, the accounting firm of Arthur Andersen held the responsibility because they were hired as auditors to ensure that the accounting rules were being followed. At any point during the audit, they could ha ve reported the misdoings of the Enron officials. Finally, the stock analysts held some blame because they continued to recommend Enron stocks even after the value of shares in the Enron Corporation fall drastically in late 2001. 2.