Enron's demise. Briely discuss the following:

What did Enron use to hide its debt? What was the main thing that led directly to the downfall of Enron? What was the basic idea underlying Enrons use of SPEs and why was this flawed?Could Raptor and the other SPEs have actually worked? Tell briefly why or why not? What is a Ponzi scheme? Say briefly how it works? What is the classic definition of materiality? What is the basic difference of responsibility between a company executive and that companys auditor? Was Arthur Andersen aware of the use Enron was making of its SPE? Give two of the things that Arthur Andersen discussed during their Enron Retention Meeting. What is the difference between the appearance and the reality of independence? Which is essential for an accounting professional? What is the relation of this difference to Arthur Andersens distinction between the level and nature of fees? What is one good reason why even the appearance of lacking independence should be avoided? What are the two kinds of objectivity? What is the basic relationship between rules and principles? Briefly explain what Ken Lay meant when he said that Enron had a real time audit by Arthur Andersen all the time. Why is the concept of a real time audit problematic? What is the basic relationship between ethics and legality? What are the ethical considerations that bear upon document destruction? What was the purpose of the SPE called RADR, which was controlled by William Dodson and, vicariously, Michael Kopper? In what way could Enrons actions justify its corporate culture being call a culture of greed?