background of Enron's woes
What is Enron?
What went Wrong?
Who lost money?
What happened to the audit committee?
What happens from here?
brief background of Enron's woes
This background material
is designed for students who are not familiar with events leading up to
the December 2001 Enron bankruptcy or with the revelations that have been
made since. Reading this background and the cast of characters is strongly
recommended before reading Enron-related summaries in "Accounting
in the News." As the saga continues to unfold, updates to the summary
will be added to this web site.
Until it declared
bankruptcy in late 2001, Enron was listed in the Fortune 500 as the seventh
largest company in the U.S. Enron's sales for 2001 exceeded $100 billion,
and the company employed more than 21,000 people. Its bankruptcy is the
largest US corporate failure in history (measured in assets at the time