Enron Corporation, one of North America's largest and most profitable corporations was founded in 1985. The company was by and large an oil and gas trader. In 2000 it reported revenues of $101 Billion dollars US. In 2001 it was bankrupt. Its common shares traded at a high of $90 US in mid-2000 and in the Fall of 2001 they were trading for less than $1. Enron's financial auditors, Arthur Anderson, one of the largest worldwide public accounting firms would dissolve its partnership as a result of this financial scandal.

In your opinion why did the Enron scandal happen? Who was at fault?

Briefly explain the Sarbanes Oxley Act. Could it have prevented the Enron Scandal? What do you think could have prevented it?