1. Enron was hanging by a thread. Enron executives told traders to do whatever it took. This meant crossing all kinds of ethical boundaries just to get a place among Enron's top traders. Enron went to great lengths to try to simulate its earnings. “When Jeffrey Skilling, a key player in this scandal, was hired, he assembled a team of executives who, through accounting flaws, special purpose entities and poor financial reporting, were able to hide billions of dollars debts to bankrupt investors. transactions and projects. Chief Financial Officer (CFO) Andrew Fastow and other executives not only misled Enron's board of directors and audit committee about high-risk accounting practices, but also pressured Arthur Andersen, which was one of the five largest auditing and accounting partnerships in the world, so that it would ignore the problems” Enron continued to find different ways to hide its debt. They used an accounting method called mark-to-market accounting. This accounting method is based on market value, which has then been inflated. Using this method, projects' revenue could be recorded, even though they may never have received the money. The tipping point for Enron came when Bethany McLean, a reporter for Fortune magazine, questioned how Enron made its money. Investors began to worry and sold their shares. When Jeffery Skilling finally realized that Enron was deeply in debt and there was no way out, he left the company. He told everyone he was leaving for family reasons. This was the final blow to the company.2. Enron's top executives were intelligent and successful individuals, as were the investors at major financial institutions, the corporate lawyers, and the accountants at the largest and growing accounting firm in the medium of paper. his income. The company's stock rose 311% between the years 1990 and 1998. If these top executives had not become so greedy and gambled with Enron's money, the company would never have come to fruition. as degraded as she did. What changes should be made to prevent this from happening again? Enron should start using ethical business practices and avoid appointing greedy individuals to high management positions. Enron was originally run by very intelligent individuals. But as time passed and they began to not only work for the company, but become the company, these individuals became greedy and made risky decisions, gambling with company money. Enron. Enron and the people who originally held leadership positions learned from this experience. This shows that companies that do not make ethical business decisions have a high chance of collapsing..