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In a case format, answer the following questions:
Enron:
1. What were Arhur Andersen’s employees and managers supposed to do and what did they do instead?
2. What are the main drivers that explain this behavior?
3. What are the consequences of this behavior for Enron, individual and venture capital investors?
Madoff:
1. What were the SEC officials supposed to do and what did they do instead?
2. What are the main drivers that explain the SEC behavior?
3. What are the consequences of the SEC’s behavior for investors over all?
 
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