This research paper takes into
consideration the tools that are availed by Modified Altman, Chanos, Beneish,
among others, to evaluate Enron Corp yearly 10k financial report as filed with SEC for the
years beginning 1997 to 2001 mainly to identify the financial fraud that the
company committed and how it could have been prevented before it escalated beyond
control. The reported base its primary data source on the SEC Edgar Database,
which has information on financial statements for all publicly listed
companies. After successfully applying analytical tools such as Altman's
Bankruptcy Predictor, Fraud Statement Index, and Analytical tools, this
research paper concludes that the company's fraud could have been detected
early on between the years 1999- 2000 period (Lucas & Koerwer, 2004).
Keywords: Bankruptcy, Financial ratios, Fraud, Beneish model.