Enron: What Went Wrong?

1. What are the key corporate governance issues raised in this case study summaries briefly?

2. Explain the key potential conflicts of interest highlighted in the case and explain why they undermine corporate governance in the company?

3. There was a succession of resignations from the company. To what extent did these resignations indicate systemic corporate governance issues within the company?

4. Do you think the independent director should have resigned? Under what circumstances should a director resign and how should he communicate this decision?

5. Do you think the company and the external auditors acted appropriately when the external auditors resigned just three days after accepting re-appointment?

6. In your opinion, were the financial woes faced by the company caused by its corporate governance problems?