1.2 Conflict of Interests
Analysts have cited the policies enacted at Enron as myopic, tunnel visional, and compensation policies being excessively centered on Earnings growth and stock market performance of stock. The largest conflict was appointment of Arthur Anderson as Auditor and Consultant(Li, 2010).
Anderson’s conflict came to the fore when the firm admitted to destroying documents related to the auditing and preparation of financial statements of Enron.