Answer:
Following parties were responsible for the Enron crisis:
1) Management of Enron
2) Management of Arthur Enderson (Auditors)
3) Regulators
4) Bankers to the Issue
5) Accounting Professionals
Step-by-step explanation:
1) Management of Enron Corporation
The front runners of the scam, the top management of the Enron Corporation hide billions of dollars in debt from failed deals and projects. They also influenced the auditors with their scheme. Chief Financial Officer Andrew Fastow and other executives not only misled Enron's Board of Directors and Audit Committee on high-risk accounting practices, but also pressured Arthur Andersen to ignore the issues.
2) Management of Arthur Enderson
Arthur Andersen was Enron's auditors and also providing them consultancy services, they were responsible for the negligence in their audit procedures because of the significant consulting fees generated by Enron. Their methods were questioned as either being completed solely to receive its annual fees or for its lack of expertise in properly reviewing Enron's revenue recognition, special entities, derivatives, and other accounting practices.
3) Regulators
The role of SEC is also questionable as they could have played a stronger role and took serious stance to stop them in manipulating the accounting records and influencing the auditors
4) Bankers to the Issue
In the midst of the financial crisis and the post 9/11 scenario where securities were facing the turmoil, investors, bankers i.e. the underwriters should have placed stronger due diligence procedures.
5) Accounting Professionals / Industry Unions
The technical group responsible to regulate auditing and accounting standards should have understand the gravity of the situation and help out the auditors with their ethical responsibilities and in understanding of the issue whether it was about the disclosure requirements or the special purpose entities.