Enron Corporation was a controversial company. In 2001, the company went bankrupt due to alleged massive accounting fraud and financial misconduct. This incident had a major impact on the global financial sector and caused widespread concern about corporate management and regulatory systems.

During its brief period of glory, Enron was recognized as one of America's most creative and acclaimed corporations. The company has been hugely successful in energy trading, with its market capitalization quickly rising and its stock price soaring. However, behind the company's success lies high-risk accounting practices and fraud.

Enron's fraud was primarily planned and carried out by top management and senior financial personnel. They employed a series of sophisticated accounting tricks, shifted debts to subsidiaries and withheld important information to make the company's financial health look better. These frauds not only misled investors and analysts, but also deceived regulators.

Once the matter was revealed, Enron's top managers attempted to cover up their illegal activities by destroying numerous documents and records. This behavior attracted widespread public and regulatory attention and prompted an in-depth investigation of the company.

Enron's collapse rocked the entire financial system, causing huge losses to investors, thousands of employees losing their jobs, and huge losses to pension funds and charities. The incident revealed problems with corporate governance and auditing.

Legal agencies launched lawsuits against Enron for its fraud. The IRS investigated Enron and brought tax charges. In addition, the company was involved in illegal activities such as false advertising, stock price manipulation and illegal insider trading.

This incident forced the United States to re-examine its corporate governance and auditing systems and promoted a series of reform measures to strengthen supervision and transparency of corporate financial activities. This event changed the financial community's understanding of corporate financial reporting and internal controls, emphasizing the importance of auditing and monitoring true, accurate and transparent financial reporting.