What happened with the demise of Enron was a revelation to everyone. We would like to believe that financial institutions, brokerage firms, organizations and the government have their best interest at heart, but that is not always the case. This incident caused the population to lose confidence in the institutions in which they had previously trusted so much. If the population does not have confidence, then businesses cannot fight and the economy will continue on a downward slope. The problems that existed with Enron were that their culture was not conducive to success because it was not built on trust. There was a malfunction at the senior management level. The leadership was charismatic and selfish. There was a conflict of interest due to the fact that an individual worked as an executive member of the company and was also a member of its accounting team. This downfall was the work of a group of people, within senior management, who made a collaborative decision to When you think of accounting and Enron, the name Arthur Andersen comes to mind. Andersen was a member of one of the major accounting firms, but he was also a member of Enron's management team. His accounting firm performed the audit for Enron; moreover, he therefore occupied a dual position within the company. It seems logical that when problems began to exist, the accounting firm tried to work with management to remedy the problems. A reason for not working with management may be due to conflict of interest. Andersen was part of the management team as a consultant, helping to make decisions and create problems, and on the other side, he was the one auditing the company. Why would he tear down something he helped create, especially since he was reaping the benefits of what was happening at the company? On the other hand, as an auditor, if he concealed it, he still had