In describing the extent of the financial reporting
deception perpetrated at Enron, McLean and Elkind
(2003) point out that financial staff, analysts, auditors,
bankers, and the executives who were involved
knew that Enron’s market value was built upon
fabrication rather than reality and that its financial
statements did not accurately represent Enron’s
financial status. McLean and Elkind (2003, p. 230)
summarize the nature or Enron’s financial misrepresentations: