Did Enron’s Bankers, Auditors, and Attorneys Contribute to Enron’s Demise? If So, How?
Autor: kusum79 • March 31, 2015 • Case Study • 303 Words (2 Pages) • 2,548 Views
Kusum Adhikari
Spring 2014
BA 461 Ethical and Legal Aspect of Business
Independent response Paper- Enron
February 16
Question: Did Enron’s bankers, auditors, and attorneys contribute to Enron’s demise? If so, how?
Yes, Enron’s bankers, auditors and attorneys definitely contribute to Enron’s demise. Because of their ‘omission lying’[1], Enron was able to get away with their misconduct for several years. Enron’s bankers, auditors and attorneys they knew there was problem with Enron finance. But ‘they did not accurately represent the company’s true financial condition.’[2]
Enron was one of the top clients of Houston law firms Vinson and Elkin. There were record showing that Enron had received opinion letter from the firm to support the legality of the deal.[3] Auditor has a responsibility of confirming the accuracy of financial statements and internal bookkeeping. But Arthur Andersen, auditor of Enron Company failed to do show instead he was involve in ‘accounting Fraud.’[4] ‘In March 2002 Andersen was found guilty of obstruction of justice for destroying relevant auditing documents during an SEC investigation of Enron.’[5] On the other hand, Merrill Lynch, the brokerage and investment-baking firm continued to use risky investment practice, which became one of the reasons of the financial loss of company.[6]
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