Wk2 - Toffler and Mr. Bass. Ms. Toffler reported that...

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1. What did Arthur Andersen contribute to the Enron disaster? Arthur Andersen, formerly a prestigious accounting firm, became too obsessed with  increasing audit revenue rather than the risks involved; thus, they were providing low  quality in audit internal controls for investors. The lack of interest by AA’s management,  in ethics, added “fuel to the fire,” which lead to the Enron disaster.         3. What was the prime motivation behind the decisions of Arthur Andersen’s audit  partners on the Enron, WorldCom, Waste Management, and Sunbeam audits: the public  interest or something else? Cite examples that reveal this motivation. There were two specific examples I can think of that revealed the self-centeredness of  the AA leadership, which are the witnessed accounts from partners within AA, Ms. 
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Unformatted text preview: Toffler and Mr. Bass. Ms. Toffler reported that management meetings measured its successes and failures solely on revenue and they failed to analyze quality and content of audit controls. Mr. Bass, whose main focus was on internal quality control, questioned transactions and roles/rulings of management within Enrons audits. Due to his inquiries to management he ended up being removed because he was simply questioning the validity of the quality internal controls on the Enron account. Their statements conveyed that the main focus was primarily based on revenue gained rather than quality of service to the public and effectively complying with GAAP guidelines....
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Wk2 - Toffler and Mr. Bass. Ms. Toffler reported that...

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