Acc 260 Week 2 Checkpointg

1. Authur Andersen did not apply something specific or tangible to the Enron disaster, what they did contribute was poor accounting and ethical procedures. The firm that was built on integrity and values suffered from the sign of the times and culture change. erstwhile driven by integrity and pride, their business was now driven by revenues and fear of losing or upsetting a client. Aurthur Andersen contributed a sense of oversight; where they failed to have Enron establish and enforce upcountry controls, ultimately contributing to the failure of Enron. There were the memos requesting that Enrons documents be shredded and questions as to what was shredded and why it was shredded. 3. The prime motivating behind the decisions of Arthur Andersens audit partners was purely in the saki of generating revenue, profit, and keeping those clients that made them the most profit. AA used SPEs to develop false profits, inflating Enrons earnings, while hiding their losses. AA did things like dissolve the advice of its quality control partner, they did not act upon any turn out found, and did not advise Enrons audit committee of the study conflict of interest situations. 4.

The Enron, Waste Management, Sunbeam, WorldCom, Global Crossing, and the Baptist Foundation of genus Arizona scandals and disasters is exactly why an auditor should make decisions in the everyday interest instead of the interest of management or veritable shareholders. These 6 disasters cost almost $3 billion in losses to shareholders and almost 30,000 job losses. The study mentions that 85,000 Enron employees had to suffer slap-up losses at the hands of maybe a totality of 100 employees. Arthur Anderson was once a firm built on pride, integrity, and education, and now today is non-existent. Aside from the losses mentioned above, the auditor has a fiduciary responsibility to the public and takes a pledge to do so; to ethically conduct their business. If you want to get a full essay, order it on our website: Orderessay

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