acc562 week 7 discussion 1

acc562 week 7 discussion 1 - Case7AEnron Based on your...

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Case 7A - Enron  Based on your analysis of the “Enron” case, respond to each of the discussion points: Discuss how the collapse of Enron contributed to the “crisis of confidence ” related to the public accounting profession. Discuss the key requirements included in professional auditing standards regarding the preparation and retention of audit work papers . Who owns them, the client or the audit firm? As pointed out in the case, the SEC does not require companies to have their quarterly financial statements audited. What responsibilities do audit firms have with regard to the quarterly financial statements of clients? Should quarter statements be audited? Discuss how the collapse of Enron contributed to the “crisis of confidence” related to the public accounting profession. The success of the accounting profession largely depends on how it is viewed by the public. The public perceived that they could not rely on accountants after the collapse of Enron, and the image of the accounting profession had been damaged by the Enron scandal. The collapse of Enron stock, its financial restatements, and the subsequent disclosures made by its auditors have shaken the faith of the investing public in the entire accounting industry with particular concern for the role of auditors and the reliability of their financial disclosures. In addition, the Enron collapse had undermined the public confidence in the management of large corporations, in the
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acc562 week 7 discussion 1 - Case7AEnron Based on your...

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