The Enron scandal involves four fraudsters: Kenneth Lay, Founder of Enron, Jeffrey Skilling, CEO,

Andrew Fastow, Former CFO, and Kenneth Rice, Former Broadband Unit CEO. Kenneth Lay started Enron
in 1985 by combining Houston Natural Gas and InterNorth Inc. Kenny Boy started the Valhalla Scandal in
1987. Two oil dealers bet heavily on the company by funding false accounts. Lay didn't make any
changes or fire the two traitors because he said they were helping the firm. Ken Lay claimed astonished
when the two traitors were convicted, saying he didn't know about their gambling and larceny. After the
incident, Lay named Jeffery Skilling CEO and became Chairman. Lay's biggest asset was Jeffrey Skilling.
Mark-to-Market Accounting led the corporation to falsely earn billions. He used this strategy to hide
trading losses and other firm operations. The MTM disguised losses and made the company appear
more lucrative. With the support of former CFO Andrew Fastow, he worked with other top officials to
mask Enron's failing finances, especially when he helped set up off-books partnerships to avoid declaring
losses. He also defrauded Enron through partnerships. Kenneth Rice lied with others about the
company's software progress. In the end, the company's fraudsters were convicted of securities,
conspiracy, bank, insider trading, and wire fraud. I would also like to mention Lou Pai. He was the CEO of
an Enron subsidiary and left the company with hundreds of millions of dollars, while his business division
lost a billion dollars.

In the Enron case, the employees were the first source of ethical issues. As we talked about in
the third part, Enron's culture led to many bad things and helped the company commit fraud and go
bankrupt. Enron had competitive environments and high standards for judging employee performance.
Aside from that, Enron only cared about making money. If Enron gave their workers more job stability,
they might be less likely to cheat at work. Also, if companies cared about their employees and other
stakeholders, they couldn't make as many decisions as they do. Because of this, businesses should work
to create a healthy corporate culture. Second, everyone at Enron is only interested in making money. It's
good that they were thinking about how to make their business more profitable, but it's bad that they
didn't handle it well. They only cared about making money by making good financial numbers, not about
what the company was really worth. Another thing is that they forget about their employees, their
needs, wants, etc., because they only care about making more money. This is some of what the Enron
Company brought and talked about. It's a wake-up call for people in business that ethical values are
important or necessary in an organization. This will help you make better decisions about how to make
your business profitable.

To combat fraud, companies must design and maintain a corporate governance system. Access
to bank account records, inventories, expense reimbursements, overtime, writing checks, accounting,
and payroll, as well as reviewing audit logs to make sure records are accurate, are all examples.
Employees who take part in the company's scams must know how to spot signs of fraud, how to stop it,
and how to keep track of their peers' and customers' odd behavior. If they have a way to track someone
without anyone knowing, they can tell their bosses about a coworker. Companies must have individuals
to take care of these tasks, keep cash and accounting tasks separate, or hire someone else to do them
through a virtual CFO partnership. These are things the company is doing to stop fraud.