Lehman case revives dark memories of Enron times

Lehman case revives dark memories of Enron times - Lehman...

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Lehman case revives dark memories of Enron times By Jennifer Hughes Published: March 25 2010 A senior audit firm executive joins a company audited by his previous employer. He rises through the finance ranks of his new company, which retains its long- time auditor. Then something goes wrong at that company, raising questions about what the auditor should have known or done. Is this sort of relationship absolutely fine, eyebrow-raising sense or just plain wrong? Anton Valukas's examination of the collapse of Lehman Brothers has dragged auditing back into the sort of spotlight it hasn't endured since Enron and Andersen. One of the biggest revelations from the Enron collapse was the overly close relationship with its auditor. This was not just because of the fees the energy group generated for the firm, but also because many Andersen staff left to join Enron, bringing the groups closer. Since then, the rules covering auditors and their clients have changed dramatically. But the Valukas report's questioning of Ernst & Young's role in
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This note was uploaded on 04/04/2011 for the course ACCT 5010 taught by Professor Fischer during the Spring '11 term at Kean.

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Lehman case revives dark memories of Enron times - Lehman...

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