Introduction Upon its inception in 1985, Enron Corporation managed to attain market leadership within the American Energy industry (Enron 2002). The firm experienced fast growth due to business diversification. Apart from energy, Enron ventured into other business lines such as fiber optic, newsprint, and broadband cable. In addition to product diversification, Enron also ventured into the international market such as Japan, South America, Australia, and Europe (Enron 2002). Its diversification strategy enabled it to attain high profitability levels. From 1985 to 2000, the firm’s assets grew from $12.1 billion to $33 billion. Additionally, the number of its power projects increased from 1 to 14 in 11 countries during the same period (Enron 2001). The firm’s share price increased significantly, thus making it an attractive investment option. By 2000, the firm ranked 22 nd on the list of the 100 best companies, in the U.S. However, between 1999 and 2000, the firm’s revenue level increased from $40 billion to $101 billion (Enron 2002). This high rate of revenue growth during these two years became questionable amongst many shareholders because the firm did not undertake any additional investment such as installing new power plants or pipelines. According to a report released by Enron (2002), probably the firm’s management team engaged in unprofitable businesses in addition to forging the accounting practices in order to shroud its actual financial position. Some of the accounting irregularities that the firm engaged itself in were disclosed by Sherron Watkins who was the firm’s Corporate Development Executive. Aim and scope In a quest to understand Enron’s collapse, this report seeks to conduct an independent analysis on the events leading to the firm’s collapse, identify four questionable business deals that Enron engaged in, and provide a summary on how these deals were structured and accounted for in the firm’s financial statement. The report includes business deals between Enron and Condor, Enron, and Raptor. Additionally, the report evaluates the assertion; made by Sherron Watkins, and thus provides a summary of three fraudulent accounting practices and their effects on the reported results. Ultimately, the paper outlines a summary of the study and a number of recommendations on how to prevent such occurrences. Analysis of events leading to the collapse of the firm and the questionable deals that Enron engaged in The corporate governance fabric integrated into an organization is critical in nurturing an environment that minimizes the occurrence of risk of fraud through implementation of fraud detection, deterrence, and prevention mechanisms and techniques (Enron 2002). Effective corporate governance is also paramount in the development of nurturing and sustaining an organizational culture that is characterized by high levels of ethics and honesty. On the other hand, fraudulent deals will always lead to sad endings because without transparency, individuals seek to benefit themselves, which violates business objectives. This assertion comes out clearly in the case of Enron after some few individuals sought to engage in fraudulent deals for personal