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You are required to post an initial response to the question/issue presented in the Forum and then respond to at least 3 of your classmates’ initial posts. You should also respond to anyone who has responded to you.Oversimplifying the case of Enron and Arthur Andersen, Enron was using some accounting practices that were questionable. Because Arthur Andersen was an independent auditor, they were responsible for reporting any questionable accounting practices might be risky to the shareholders of Enron. The Security and Exchange Commission was responsible for requiring and publishing accurate information about Enron's accounting information. In the end, a few Enron employees went to jail, and Arthur Andersen stopped doing business under that name.Identify what you consider any conflicts of interest in the case of Enron and Arthur Andersen.What could have been done to avoid the conflicts of interest you identified?How would you change the laws to correct the problems that came up in the Enron and Arthur Andersen case?Explore how Enron and Arthur Andersen might have been encouraged to act ethically other thandirect legal pressures. Written AssignmentCase Study:Conflicting Clients
Topic:Auditing (Confidentiality, Misrepresentation of Facts)People Involved:Jennifer Grace, First year member of her CPA firm’s management groupTom Ward, CFO of Fantastic Developments, Inc., a clientWhile reviewing the current-year audit working papers of Coshocton National Bank (CNB), the engagement manager, Jennifer Grace, noted something curious. In the working papers related to loan valuation, Jennifer saw that the commercial loan of Fantastic Developments had been randomly selected for confirmation but that Fantastic had not responded to either the initial or second confirmation request. The audit staff disposed of this “loose end” by alternate procedures: examining