Abstract

The aim of this study is to discuss and analyse the reasons for the collapse of one of the huge energy companies
(Enron), which resulted in its collapse to the collapse of the largest auditing firm in the world (Arthur Andersen)
to prove their involvement in manipulations of finance which was Enron, and then see recent changes to the
corporate governance because of those collapses, and the views of the surrounding environment in the United
States, the possibility of the application of those changes on the ground. The study concludes that: both collapse
of Enron, and Arthur Andersen are due to specialised ethics, Arthur Andersen did double job to Enron, and which
was a clear violation to the rules, The financial market authorities was responsible to those collapses due to
shortage of control, most of the companies and auditors face difficulties in applying new rules of corporate
governance, and main problem arise in ethics not in the rules controlling corporate governance.

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