Enron and the Company's FailureEnron was a company known to many people and companies not only in the United States but also around the world. It has grown to become one of the largest companies, so as imagined, many people were affected by the company's downfall. Over 210,000 employees lost their jobs without even knowing what awaited them and what was happening behind the doors of the people who ran the company. In addition to losing their job and form of income for their family, they also lost the money they had invested in the company's shares and pension funds, because the company encouraged employees to invest their money in their own shares and even closer ultimately they wanted their employees to invest even more money. Good business decisions are based on the financial statements prepared by accounting firms or accountants within a company. When taking into account any company, they all follow a standard called GAAP (generally accepted accounting principles), GAAP provides guidelines and rules that companies use when preparing their financial statements so that all companies are on the same page l 'with each other. When Arthur Anderson's accounting was preparing financial statements for Enron, he lied about the financial situation the company was in, in order to make it appear financially better than it actually was. No one can really reason why they did this, but everyone can speculate about what was happening, who was involved, and why all of this happened. After Anderson accounting was involved in the fraud scandal of Enron and also WorldCom, they got themselves a bad name and reputation, so no other company would like to do business with them. Companies that currently do business with them would not want to be affiliated with them. When the company did the audit, they actually wouldn't have been in such deep waters that they got themselves into if they hadn't tried to hide things and destroy their documents, because they really only had 4 main areas where they would have could have been caught. The first person at Enron to be convicted was the company's former treasure, Bill Gilsan. Gilsan pleaded guilty to taking part in the fraudulent activities that were occurring with Enron.