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The Enron scandal is The most notorious monetary scandals in U.S. historical past, highlighting the catastrophic penalties of unethical company procedures and corporate governance failures. Enron Corporation, an American Electrical power firm located in Houston, Texas, was at the time deemed one of the most ground breaking businesses in the United States.

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Arthur Andersen also came underneath extreme scrutiny, As well as in March 2002, the U.S. Department of Justice indicted the organization for obstruction of justice. check this Clients desirous to assure traders that their economic statements could satisfy the best accounting specifications abandoned Andersen for its competitors. They had been quickly accompanied by Andersen staff members and entire places of work.

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