Enron: The Smartest Guys in the Room Importance of Accounting Accounting is important because it manages the checkbooks of company which are important to analyses and determine the success of the business by looking through the different account statements and translating the company documents. An accountant or accounting firm starts and maintains auditing of a company. Accounting is also important because it offers a great assistance in planning the future investments as well as being able to make important decisions.

The set of tankards that the accounting profession uses in the United States of America is GAP (Generally accepted accounting principles), however if we were talking about the set of standards that the accounting profession used in Canada, we would be talking about FIRS (International Financial Reporting Standards), which has recently become a requirement for Canadian profit-oriented enterprises beginning after January 1, 2011. Who was responsible for this scandal?

The CEO of Enron, Jennie Lay, was responsible because first of all he lied to investor and told them that the stock prices would increase to about 130 dollars when the stock price were at $90 but he knew about Enron’s financial problem so he started selling his stocks because he knew the prices would drop. Secondly, The CEO should be focusing on increasing profits but instead he knew about the finical position but he didn’t try to fix it instead he tried to keep himself out of a finical trouble and ignored the needs of this multi-billion dollar organization.