Abstract

The purpose of this article is to review the collapse of the Enron Corporation and the collapse#x2019;s effect on the United States financial market. Enron Corporation, the seventh largest company in the United States, misguided its shareholders by reporting $74 billion profit of which $43 billion was detected as fraud. Moreover, according to the association of fraud examiners $2.9 trillion was lost because of employee fraud. For example, as presented by Kieso, Weygandt, and Warfield (2013), in a global survey study that was conducted in 2013, it was reported that 3,000 executives from 54 countries were involved in fraudulent financial reporting. Therefore, the world of accounting is dominated by the top four accounting firms known as (1). PricewaterhouseCoopers (PwC), (2). Deloitte