Enron Collapse

What ar the main reasons that Enron collapsed? I think the reasons for the collapse are three fold. Firstly Enrons accounting practices(mark to grocery store accounting- companies estimate how much revenue a deal is going to bring in and state that cast in their earnings the moment the contract is signed) Its managements goal was to maintain the appearance of value by constantly having rising stock prices rather than focus on creating real value for the lodge.Secondly its reliance on excess Purpose Entities to constantly raise capital without increasing its indebtedness. It allowed losses to be kept off the books season assets to be stated. Enron had its own executives manage these partnerships and would make the deals work by guaranteeing that if whatever they had to sell off declined in value, enron would make up the difference in its own stock. So basically it was selling part of itself to itself.It was these pecuniary bolications to the SPEs that ended up triggering the c ollapse. Thirdly its lack of a truly independent auditor to dissent up to Enron ultimately caused its downfall. 2. Do you think Enron could have survived? I think if the company had acted internally when Sharon Watkins account suspicious accounting, and dealt with it internally , Im sure the share prices would have dropped upon reporting of the actual financials but maybe the company could have avoided bankruptcy. 3.Crisis Management Consultant of Arthur Anderson, what would your advice be to the CEO? I think I would have admitted the fatuity of performing both auditing and consulting functions I maybe would have focused on the hiring of of Arthur anderson employees as enron employees, who then managed the affairs of their old colleagues. Ethical lines got blurred. Then use this platform to lead the industry to reforms and act oversear of how to avoid their mistakes and breakdowns of parley within their corporation.