Enron was founded in 1985 by Kenneth Lay as a natural gas company in the pacific northwest. Lay later then became the CEO of Enron, with a salary of $200 million. Enron benefit from the energy markets of US since they were being deregulated, which means it was being transmitting from government control into free market. During this time, Lay hired a visionary Jeffrey Skilling, who moved the company to Houston, Texas in 1990. By making this move, Enron became a national mailman for the national electricity market in the recently deregulated states. Varies companies would sell their electricity to Enron who would then sell its electricity to individual customers, charging everyone along the way. This innovative approach lead to a wide critical claim for Enron with many praised success. However, this claim lead for it to be in a highly competitive environment. The company’s stock prices were plastered on the walls of the building, reminding everyone of the worth Enron was at and how they needed to maintain this success. As the internet usage became more popular in the late 90s, this is when they launched an Enron online, is an energy trading e-commerce site, which was largely successful. Since this was so successful, Enron used this platform to use as high speed trading services for bandwidth, weather and advertising, but all these services failed and placed Enron in extreme debt. Nonetheless, Enron was able ...
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... in was the independent auditors. Be that as it may, this independent auditors made more money from consulting then they did from actually auditing. Which leads to believe that there was a lot of inner weight to safeguard the income stream, as opposed to imperil it petty propriety. In a sense, they were not independent. Thinking these actions were atypical, it stays to be seen whether the innocent will be held accountable along with those that are guilt. Lastly, Congress had its role as a regulator. In 2000, Arthur Levitt, then chairman of the SEC, proposed an SEC rule that would bar accountants from also acting as consultants, because he felt it created a conflict of interest. (Cite) That proposition was dismissed after several individuals from Congress called or wrote letters to Levitt questioning the proposed rule and threatened to withdraw financing from the SEC.
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