Part I: 400 words

  1. In all of the accounting scandals of the past decade, where were the auditors? Explain.
  2. Why do Ponzi schemes continue to work time after time?

Part II: 700 words

  • What are “cookie jar” reserves? Explain Enron’s use of this concept.
  • Identify as many stakeholders as you can in this case. Explain how each was affected by the events surrounding the demise of Enron.
  • Summarize the main points of this case in one succinct paragraph. All the executives in this case believed they were not guilty of the charges levied against them.
  • Why would they believe this, given the evidence presented in their trials?


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