... many executives at Enron and Andersen focused on the "letter of the law" rather than on whether the proposed accounting appeared ethical and "fair." This issue extends beyond Enron and Andersen, as seen in many recent articles in the popular and business press, but understanding the current crisis requires starting with what happened at Enron. A Short History of Enron Enron's 2000 annual report stated that its business is- to create value and opportunity for your business by combining financial resources, access to physical commodities, and market knowledge to create innovative solutions to challenging industrial problems. This unusual business arose from a 1985 merger of Houston Natural Gas and InterNorth. In 1986, Kenneth Lay became the newly created firm's top executive. He later became chairman of the board and hired Jeffrey Skilling as CEO. Under their leadership, Enron adopted an aggressive growth strategy. Andrew Fastow, Enron's CFO, helped create the complex ...

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