HOUSTON (CNNMoney.com) - Defense testimony from Enron's ex-general counsel James Derrick dragged into a second day Thursday, putting off former CEO Jeffrey Skilling's testimony until Monday.

Skilling's testimony is at the heart of the defense's case as he hopes to convince the jury that he wasn't the greedy, megalomaniac portrayed by his former lieutenants and the media.

Jeff Skilling (left) and his lawyer arriving at court in Houston Thursday.

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Skilling, who generally speaks through his attorney, told reporters that he was looking forward to testifying. "It's time to get the story out," he said outside of the courtroom Thursday. "I have nothing to hide. I am innocent of all the charges that have been put forward, and I think we'll show that when we get on the stand," he said.

Skilling's lead attorney Daniel Petrocelli, also speaking outside the courtroom, said he was appreciative that Derrick took the stand when so many other members of senior management have resisted testifying.

Many former top executives at Enron have said they would invoke their Fifth Amendment right against self incrimination if called to the stand -- a decision Petrocelli said was made out of fear and intimidation in the wake of Enron's collapse.

"I urge other members of senior management, and they know who they are, to come here and testify. The public deserves it, Enron employees deserve it, shareholders deserve it, and the country deserves it," Petrocelli told reporters.

On Thursday, Derrick testified that he and Enron founder Kenneth Lay took then-vice president Sherron Watkins allegations of improper accounting seriously, calling for an immediate inquiry into the matter.

Under cross-examination late in the afternoon from prosecutor John Hueston, Derrick said that he and Lay determined it would be improper for Enron to participate in the investigation and relied on the counsel of law firm Vinson & Elkins who decided their preliminary investigation in a narrow scope.

Derrick said Lay never provided him with e-mails Hueston said Lay saw from other internal Enron attorneys, which he admitted could have widened the scope of the investigation. But he insisted that if such e-mails existed it was the responsibility of the senders to provide him with the information.

Derrick also contested Watkins' assertions that she was targeted after coming forward. Watkins testified last month that she found out months after her meeting with Lay, that a memo was sent to Vinson & Elkins to determine how she could be fired without risk to the company.

"Did you seek legal advice to fire Ms. Watkins?" defense attorney George Mac Secrest asked. "Exactly the opposite, it was not an attempt to fire Ms. Watkins," Derrick replied, adding that the company was looking to make sure that both she and the company were protected.

Earlier in the day, Derrick said he never heard Skilling express any concern over Wall Street's perception of Enron and had never been told by any senior executives that Skilling made any dramatic declarations that were cause for concern.

The defense in the case against Skilling and Lay tried to refute the testimony of Kevin Hannon, a former executive from Enron's broadband unit, who testified early last month. Hannon testified that at a policy meeting where executives mentioned an article that was critical of Enron's financials, Skilling uttered the ominous words, "They're on to us" -- implying that Enron was involved in questionable activities.

Upon cross-examination however, Hannon conceded that it was possible that Skilling was being sarcastic.

"Did Mr. Skilling have sarcastic humor or make jokes about his dislike for short sellers?" defense attorney Mark Holscher asked Derrick.

"Yes, he did," he replied.

Derrick also refuted claims from former executives that Skilling attempted to manipulate disclosures or provide misleading information on financial statements. He testified that public documents were put together by a team of lawyers and accountants and were signed off on by Arthur Andersen. He added that Skilling and Lay didn't overrule expert advice.

The defense has maintained that Skilling and Lay relied on the advice of accountants and lawyers before embarking on any complicated financial transactions. It's a point Skilling is sure to bring up as he tells the jury his side of the story and one Derrick emphasized by saying that Enron had "to rely on people whose competence they reasonably believed in."

Under direct examination from Lay's attorney Secrest, Derrick said he personally required every business unit interested in hiring an outside attorney to go through Enron's general counsel to engage their services. He said the move was to ensure that outside attorneys wouldn't be afraid of retribution if the company didn't agree with their advice.

He added that Enron relied on the services of outside law firms as an "additional control check" for the company, adding that outside counsel would have to be comfortable with the accuracy and legality of any advice they gave Enron because they signed their names to any documents.

While Derrick is expected to conclude his testimony Monday morning, all eyes are turned to Skilling.

Petrocelli estimated that Skilling will be on the stand for several days as he attempts to convince the jury that he never committed or directed anyone else to commit any crimes at Enron.

But Skilling has a lot of questions to answer. It's a case based on the testimony of witnesses, rather than any smoking gun document implicating either Skilling or Lay of specific crimes. So, for the jury it comes down to one thing: who do they believe?

Skilling will have to address accusations made by top level executives such as former financial chief Andrew Fastow. In his testimony last month, Fastow said he engaged in secret side deals with Skilling to move poor performing assets to Fastow's LJM partnerships in order to "juice" Enron's earnings.

He will also have to answer accusations that he knowingly misled investors and employees about the true health of the company and directed his subordinates to meet analysts' earnings expectations at all costs.

But in a "he-said, she-said" case such as Enron, Skilling will have to rely on more than just his testimony. He will count on being likable enough to sway the jury. And that will be the true test for Skilling -- a man known for his quick temper and cocky demeanor.

It's an uphill battle for the defense, especially as the defense team pushes forward with the assertion that not only were Skilling and Lay innocent of any crimes, but that there were no crimes to begin with at Enron, with the exception of Fastow's shady dealings.

Skilling's testimony will be followed by that of three character witnesses, rather than Lay, as originally anticipated.

It's still unclear whether Lay attorney Michael Ramsey will be back in time for Lay's testimony. Ramsey who had a stent placed in his heart late last month and has been notably ill throughout the beginning of the trial, will undergo a stent procedure to clear a blockage in a carotid artery Friday morning, according to a spokeswoman for Lay.

The defense team said Ramsey's illness isn't expected to cause any delays or complications within the trial, although for Lay, the timing couldn't be worse.

Lay and Skilling combined face almost three dozen fraud and conspiracy charges. They are accused of lying to investors about the company's financial state while they enriched themselves by selling millions of dollars in stock. Lay will also face an additional trial for fraud once the jury in this trial enters deliberation. Legal experts estimate the defendants face 20 to 30 years behind bars if convicted.

Enron was once the seventh-largest corporation in the U.S. It declared bankruptcy in December 2001, costing 4,000 employees their jobs and resulting in millions of dollars in losses for investors.

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