I am a student of bcom(ecom)-5 n doing a project on the failure of ENRON.
Its failure involves many issues like lack implementation of corporate governance , SOXNORMS , Accounting standards ,etc.
Hence i would like to welcome any suggestions from you , as IFRS is also included in it.
And i m very happy to read your mails and i hope i would also be able to join in the discussions later.
Dear Krish ,
Sorry not to be able to be of big help due to lack of information about the Enron case , in case you can supply me with some details I may help you.
Here are some failures of Enron according to my memories of studies at ACCA, Inter alia
1)Enron keep major financial arrangements off- balance sheet.
2)The directors sold out their shares before the failure is announced (Insider dealing which amounts failure in fudiciary duties)
3)Enron was reported the major US Profitable business while actually it is not and as a result Dirctors were getting Bonuses
4)The failure of Auditor Anderson to consider the above problems.
Based on my limited knowledge, Enron’s failure is not so much lack of policies and documentation but fraud and top management overriding the controls. I have attended some ERM seminars and they often say that Enron has the best Risk Management policies etc.
One key reason why Anderson do not consider/report the problem could be a simple case of the ex-engagement partner of AA was subsequently appointed as directors or CFO of Enron.
Here are some links that can be useful for you.