On October 26, 2002, a special subcommittee was formed from the Enron Board of Directors. This subcommittee was headed by William Powers, Jr. and its report was known as the Powers Report. This report found and reported upon several findings. Which of the following findings was not contained in the Powers Report? (Points : 6)

1 The original accounting treatments for the Chewco and LJMI transactions were wrong. 2 Transactions were otherwise aboveboard and disclosed the proper information necessary to be properly audited. 3 Employees enriched themselves by millions without proper approvals. 4 Partnerships were established and used to enter into various transactions that could not be arranged with independent entities; were designed to five favorable financial results; and did not conform to U.S. accounting rules.