Enron: The Destruction of Investor Confidence

  • By: Mike Morley, Certified Public Accountant
  • Date: October 17, 2011
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The largest corporate bankruptcy in US history (Enron) shook the very foundation upon which the securities exchange system was founded. The report card that investors and lenders used to make their decisions, the audited financial statement, could no longer be trusted. Investors and lenders lost confidence in public company senior management to tell them the truth.

In this article, Mike Morley, a Certified Public Accountant and author of several books including “IFRS Simplified" and "Sarbanes-Oxley Simplified", discusses what led to the collapse of investor confidence in Enron.

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