为公司的整体失败的另一个原因是，审计事务所进行审计的公司而毫无根据的标准。审计事务所叫Arthur Anderson，收到了大量来自公司的审计和咨询服务。后来据说Arthur Anderson要么缺乏专业知识来进行审计的公司或缺乏专业知识复习特殊实体、衍生品等进行安然（布拉顿，2001）。
The employees in the company started striking deals with other companies without paying much attention to the future cash flows. This was done so that they could have a good performance review and to get rewarded with fat bonuses. The company paid huge attention towards increasing the prices of the stocks irrespective of the ways which were used to do so. The company has placed stock tickers almost everywhere which would be seen by all the employees and they would start working towards increasing the stock prices. The company showed inflated earnings so as to increase the stock prices. The company believed in keeping its employees happy and hence started allotting shares to them so that the employees engaged themselves only in original thinking (Coffee Jr., 2003).
Enron was believed to have the best financial risk management tool. The long term fixed commitments were to be hedged so as to equip the company against the abnormal fluctuation of prices in future. The company used derivatives recklessly and used special purpose entities for the same. There were so many special purpose entities that in reality the company was hedging risk against one of the special purpose entities only and these entities did not really exist.
Another reason for the company’s overall failure was that the audit firm which applied baseless standards while auditing the company. The audit firm named Arthur Anderson, received a hefty amount from the company for the audit and consulting services. Later it was believed that Arthur Anderson either lacked to expertise to carry out audit for a company or it lacked the expertise to review the special entities, derivatives etc which were used by Enron (Bratton, 2001).
The accountants which were hired by Enron were the best ones in their field. These accountants were the accountants who had played a vital role in developing accounting rules with the Financial Accounting Standards Board. These accountants majorly looked for the loopholes in the Generally Accepted Accounting principles and tried to save Enron’s money. There were several manipulations made so as to increase company’s earning which would further help in increasing the share prices (Coffee Jr., 2003).
Later when it was known that Anderson was at fault, the Arthur Anderson deleted nearly thirty thousand emails and had shredded several documents as a cover up against the crime.