1. Which segment of its operations got Enron into difficulties?

2. Did Enron's directors understand how profits were being made in this segment? Why and why not?

a. Enron's directors realized that Enron's conflict of interests policy would be violated by Fastow's proposed SPE management and operating arrangements because they proposed alternative oversight measures. What was wrong with their alternatives?

3. Ken Lay was the chair of the board and the CEO for much of the time. How did this probably contribute to the lack of proper governance?

4. What aspects of the Enron governance system failed to work properly and why?

5. Why didn't more whistleblowers come forward, and why didn't some make significant difference? How would whistleblowers have been encouraged?

6. What were the common aspects that were necessary for the Enron and WorldCom debacles to occur?

7. What actions by directors, executives and professional accountants could have prevented the Enron and WorldCom Debacles

8. Was the enactment of the Sarbanes-Oxley Act (SOX) necessary? Why or why not?

9. What are the three most important improvements in the governance structure that could result from Enron from SOX?

10. What is wrong with Enron's bank financing transactions they knew were without economic substance?

11. How should boards of directors change incentive remuneration schemes for executives to lessen the risk of motivating executives to risk manipulations to enrich themselves

12. What lessons you could learn from reviewing the cases?

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