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Temka [501]
3 years ago
13

The Enron scandal increased interest in more closely regulating the connection between those with economic power and those with

political power. true or false,
Social Studies
1 answer:
Elenna [48]3 years ago
7 0

Answer:

The statement is true. The Enron scandal increased interest in more closely regulating the connection between those with economic power and those with political power.

Explanation:

The Enron scandal is the financial scandal of the Enron energy company and the Arthur Andersen audit firm that was unveiled in the United States in 2001. Enron was the 7th largest company in the United States, and its bankruptcy was one of the largest in American history. The scandal led to the bankruptcy of Enron on 2 December 2001, the cessation of Andersen's auditing activities and criminal charges against the management of the companies. As a result of the scandal, accounting laws were amended in several countries. The scandal highlighted the role of auditors and the importance of financial independence for auditors. It also showed that corruption can undermine confidence in the fundamentals of the economic system, so it has to be controlled and prevent by the government.

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