The Collapse of Enron

On the 2nd of December 2001, Enron, at the time the seventh largest company in the US, filed for Chapter 11 becoming the biggest bankruptcy in any industry anywhere with losses around the $60B mark. The company's share prices fell from a high of $90 in August 2000 but were trading on the markets at about 45 cents. Enron started life as a regional gas pipeline company in 1985, but by 2001 it had become the world's largest energy trading company. Company …

…some independence, though this did not work for Anderson as only one of the members spoke out. Most importantly though the industry must accept tougher limits in respect of the non-audit services it provides to its clients. The big firms will still wish to continue to provide the full range of accounting skills including tax advice and due diligence on mergers & acquisitions though it is dangerous to provide both to the same clients.