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the shareholders best interest and also collected an auditing fee. Another example is when Carl Bass advised David Duncan, the AA partner in charge of the Enron account, to object to the setting up of an LJM partnership because it was not in the best interest of the shareholders. Duncan over-ruled Bass’s decision because he was thinking that Enron would take their business to another firm. Duncan was thinking about the loss of profit to Arthur Andersen.4. Why should an auditor make decisions in the public interest rather than in the interest of management or current shareholders?
5. Why didn’t the Arthur Andersen partners responsible for quality control stop the flawed decisions of the audit partners?