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and the Enron’s case will be repeated. In US, the Securities andExchange Commission (SEC) - a government agency was appointed to select the auditors for the companies. By adopting such agencies, we are hoping to decrease the number of financial frauds. On the other hand, there should be organizations which will check the auditing companies as well. The law was violated by Fantastic Development, although the crime was hided by the hired auditing company, which is also against the law. According to Benston (2002) there was a proposal on creating a new administrative organization to oversee CPAs. Public Regulatory Organization has an authority and responsibility to check CPAs who sign the financial statements of publicly traded corporations. Such organizations will help to decrease the number of financial frauds. I consider if Jennifer did not know the company history, she could probably would not notice the problem at the first place, considering her work experience. Conclusion The companies should be able to face any difficulties and be able to face the audit. Not trying to cover up the traces of fraud by tying the audit company. We should think not about ourselves. The fraud is not related only to Top Management, if it is occurred, anyone involve could go to court. At the end employees will lose their jobs, and people could go to jail, the company will face a failure and will lose a reputation. References G. J. Benston (February 25, 2002), Enron and Accounting Issues. Retrieved from: D. Edelman & A. Nicholson (n.d.). Arthur Anderson Auditor and Enron: What happened to their Texas CPA licenses? Retrieved from:
on%20and%20Enron.pdf The Economics (February 7, 2002), Enron and auditing. The lessons from Enron. Retrieved from:
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Financial audit, External auditor, Jennifer Grace, Fantastic Developments