Enron Corporation was an American energy , commodities , and services company based in Houston , Texas. At the end of , it was revealed that Enron's reported financial condition was sustained by an institutionalized, systemic, and creatively planned accounting fraud , known since as the Enron scandal. Enron has become synonymous of willful corporate fraud and corruption. The scandal also brought into question the accounting practices and activities of many corporations in the United States and was a factor in the enactment of the Sarbanes—Oxley Act of The scandal also affected the greater business world by causing the dissolution of the Arthur Andersen accounting firm, which had been Enron's main auditor for years.
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