Enron is a new-economy company, which was a market maker for energy trading. It ranked as the most innovative company in America four years in a row, as judged by envious corporate peers in the annual Fortune magazine poll.

When Enron got started, natural gas and electricity were produced, transmitted and sold by state-regulated monopolies. They were often inefficient. Enron used Wall Street magic to transform energy supplies into financial instruments that could be traded online like stocks and bonds. These contracts guaranteed customers a steady supply at a predictable price. By bringing the laws of supply and demand into the energy system it provided a new way of doing business for energy customers.

The number one thing that is clear is that to prevent another Enron -Andersen scandal certain reforms must be made. Many people suggest stricter accounting regulations, and more independent auditing. Others suggest it is because companies have bought influence in Washington that such an episode could have happened to the extent that it did, and that stricter controls from congress are necessary. Dr. Pava in a recent article in the Yeshiva University Commentator suggested that the problem stems from how the accounting professors think of their profession and how it fits into the larger picture of business. He states how "accounting professors teach students to think of their profession as a sub-discipline of finance. They explicitly tell students to view accounting in exclusively cost benefit terms." He goes on to say that many accounting professors teach their students that they must "add value to the bottom line as opposed to its more traditional role of judging reliability and neutrality". He brings down other suggestions from what the content of ones accounting education should include, to how professors should incorporate practical and current case studies in classes and emphasis business ethics.

All in all it is clear that the Enron-Andersen scandal has changed the business world, as we know it. It taught us that even the biggest could come tumbling down at a fast rate. We know how politics, business, and greed all go hand in hand unfortunately and how corrupt corporate America is. More importantly though this scandal is but a wake up call to how we conduct business. How all business must be reevaluated and how ethics should be a part of all our transactions in all our business dealings. It calls for reforms across the board from the government, GAAP, the FASB, the SEC, and internally from businesses themselves.

The question many wonder is how such a reputable firm for the past ninety years like Andersen could come to such ethical lows as to not only help enron cover up their dummy comp

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Approximate Word count = 1357
Approximate Pages = 5 (250 words per page double spaced)