On Enron side Poor corporate governance segregation of power unprofessional

On enron side poor corporate governance segregation

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On Enron side: Poor corporate governance, segregation of power,unprofessional behavior, On AA LLC incomplete balance sheet and profit and loss statements, inadequate or no auditor’s opinion, fact check How would you change the laws to correct the problems that came up in the Enron and Arthur Andersen case?Both the firmsencounteredCOIdue to close association and relationship and mutually sympathetic to their interests called as a familiarity threat, which is too prevalent in [public and private limited companies, and to control that the selection and appointment process of auditors and their terms of office have to be changed to bring in more rigor. Shareholders can be asked to vote for the auditing firm or have the govt appoint office of audit to deal with issues of auditing and auditors. International Ethics Standard Board of Accountants and International federation and accountants and European commissionstried to work on a paper “Strengthening safeguards against familiarity threats” 2012 and Mandatory Auditor Firm Rotation was compared to various countries and discussed. However there are no legal actions taken. Sarbanes-Oxley Act of 2002 has to be strengthen with mandatory auditor firm rotation.Strengthening Safeguards Against Familiarity Threats - IFAC. (2012, June 20). Retrieved from - Familiarity Threats - CAG agenda paperE-1.pdfExplore how Enron and Arthur Andersen might have been encouraged to act ethically other than direct legal pressures. Auditing firms should show professionalism in bringing in auditor irregularities and split up charging consulting and statement auditing. Sarbanes-Oxley Act of 2002 came after the Enron bring in fundamental changes to the auditors and companies.
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