Exhibit 1240 ยท Board committee report
Report of Investigation by the Special Investigative Committee of the Board of Directors of Enron Corp. (Powers Report), section VII, Oversight by the Board of Directors and Management
Because Andersen declined to permit its representatives to be interviewed, we do not know what, if any, steps Andersen took in light of these observations.
The committee finds oversight of the related-party transactions by the board and management failed and that outside auditors did not bring the control failures to the Audit Committee's attention. Footnote 70 records that Andersen declined to let its representatives be interviewed.
- Source
- Special Investigative Committee of the Board of Directors of Enron Corp. (William C. Powers, Jr., chair; Raymond S. Troubh; Herbert S. Winokur, Jr.)
- Date
- 1 February 2002
- Quoted from
- Section VII.A, footnote 70, printed p. 154 of the report
- Grade
- Primary record
- Document
- https://picker.uchicago.edu/Enron/Class6.pdf
- Accessed
- 2026-11-10
- Cited by
- Findings citing this exhibit
- Note
- Read in a University of Chicago course reader that reproduces Section VII of the report (printed pp. 148-). The full report is reproduced in the House Financial Services hearing 'The Enron Collapse' (Feb. 2002, appendix p. 263), but the GPO text layer read did not contain it; replace the URL with a complete official copy. Section VII opens (printed p. 148): 'Oversight of the related-party transactions by Enron's Board of Directors and Management failed for many reasons.' and 'Enron's outside auditors supposedly examined Enron's internal controls, but did not identify or bring to the Audit Committee's attention the inadequacies in their implementation.' The report states parts of Section VII are the views of Powers and Troubh alone.