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 de facto 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 was cited as the biggest audit failure In this case,

1. What was Enron’s business model and their internal control systems?
2. Which organizational processes led to the failure?
3. You are the Risk Manager. What could have been done to prevent the disaster?