7 Shocking Truths From the Enron Scandal that Caused Global Corporate Trust to Crumble

2. The Role of Arthur Andersen

Arthur Andersen, one of the largest and most respected accounting firms globally at the time, played a critical role in the Enron debacle. Rather than acting as an impartial watchdog, Arthur Andersen not only sanctioned Enron's deceptive accounting but also actively participated in destroying crucial documents as the scandal unfolded. This blatant conflict of interest between auditing and consulting services tarnished the reputation of auditing firms worldwide, leading to increased scrutiny and skepticism of their role in corporate oversight.