October, 2001 the Enron Corporation declared bankrupt. Enron is an energy based company located in Houston, Texas. Enron was known as the biggest audit failure. The Enron corporation was known as the biggest and largest bankrupt organization in the Unites States of America. The stock price plummeted from 90 dollars to less than 1 dollar. The stock holders filed a lawsuit of 40 billion dollars. poor financial reporting were able to hide the billions of dollars in debt.