Detail of Enron U.S.A company and their scandal or failure...

1. ENRON (U.S.A)
Present by:-
Krishangi Purohit
Masters of commerce (final)
4th semester

2. Overview
 Former type : Public company
 Industry : Energy
 Founded : 1985
 Founder : Kenneth lay
 Defunct : December 2, 2001
 Headquarters : Houston, united states

3. Introduction
 Enron corporation was an American
energy , commodities , and services
company based in Houston .
 It was founded in 1985 as a merger
between Houston natural gas and
Internorth , both relatively small
regional companies.
 On 2nd of dec. 2001 , enron become one
of the 10th largest company in U.S.A.

4. Key players in the enron
scandal
 Kenneth lay (CEO)
 Jeffrey skilling (chief executive)
 David duncan (US government’s star)
 Andrew faston (chief financial officer)
 Sharron watkins (vice president )

5. Enron Scandal
 Enron scandal ,published in octomber 2001,
eventually led to the bankruptcy of the enron
corporation.
 Enron was cited as the biggest audit failure.
 When jeffrey skilling was hired, he developed
a staff of executives that – by the use of
accounting loopholes, poor financial
reporting – were able to hide billions of dollar.

6. Enron scandal (cont.)
 Chief financial officer and other executives
not only misled enron’s board of directors
and audit committee on high-risk, but also
pressured Arthur Andersen to ignore the
issues.
 They also modify balance sheet to indicate
favorable performance.

7. Why wasn’t Enron caught
earlier?
 Throughout all of this, enron and its key
members were making political contributions
to the white house and congress.
 Kenneth lay donated $100,000 to president
bush in 2000, and in 2001 bush invited lay to
become an advisor to his transition team.

8. THANK YOU 