The best way to characterize the role of Sherron Watkins in the downfall of Enron is:
A) She directed the internal auditors to examine numerous transactions that led to the discovery of the fraud
B) She gave in to the pressure of Andy Fastow to go along with materially misstated financial statements
C) She was sent to jail even though she cooperated with the government in its case against Enron
D) She tried to alert Ken Lay about the accounting scandal at Enron

Question

Quizplus · Accepted Answer

Sherron Watkins is known for her courageous efforts to alert Enron CEO Ken Lay about the accounting scandal at the company. She wrote him a memo outlining the accounting irregularities and warning him that the company could "implode in a wave of accounting scandals." While her warnings were not heeded, Watkins' actions have been widely viewed as instrumental in bringing Enron's fraud to light and contributing to its downfall. She was not sent to jail, but instead continued to work within the company and eventually became a key witness in the government's case against Enron.

The Best Way to Characterize the Role of Sherron Watkins