1. What important internal controls were ignored when LJM1 was created?
2. How might Enron's harsh Performance Review Committee have aided company executives in committing the fraud?
3. The fraud at Enron is one of many major financial statement frauds that have occurred in recent years (Qwest, Global Crossing, WorldCom, etc.). What are some factors that could explain why the falsify- ing of financial statements is occurring so frequently? List four factors.