In August 2001 when the ENORON firm’s financial statement declared, at that time company’s vice president Sherron Watkins described the lack in disclosing the financial statement because there were a series of financial scandals. This was stated by the ENRON’s attorney and audit partner. The financial fraud was up to $1 billion USD. New York Times on 15 Jan, 2002 announced that the real story is much bigger that the stated one the company. This shows that there were many regulations in the financial accounts when Jeff Skilling became CEO of the ENRON Company.This resulted in collapsing the ENRON Company and it was the biggest bankruptcy in the US corporate history.