Case Study For Intermediate Accounting- Eron Corpo

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October 25, 2011 Case Study 1.1 Enron Corporation 1. I believe most of the responsible party’s for the Enron crisis would have to be the corporate executives, individual auditors, the leadership of the Anderson firm, and the many regulatory authorities that were involved with the Enron Corporation. I said the many regulatory authorities because they failed to take any proactive measures to limit the ability of rogue corporate executives, accounts, and auditors in their professional responsibilities. Corporate executives would be responsible because they insisted on using aggressive and illegal accounting and financial reporting plans. Individual auditors are responsible because they made unprofessional decisions that tainted the integrity of auditors. Lastly, I feel that the leadership of the Anderson firm focused too much attention on the practice development activities at the expense of the Enron Corporation. 2. In the recent years audit firms have provide other services besides auditing services to their audit-clients, some of these other servicer are: Financial information design and implementation, Bookkeeping or other accounting record statements needs, and some Management functions. For an audit firm given management function advice o their audit clients it could threaten the auditor’s independence by having to evaluate the work of someone that they recommended. With the audit firms giving the financial information design and implementation service they would be forced to evaluate the accounting system that they helped set for the audit client. This goes with the Bookkeeping and Accounting record services because the audit firm would lose their independence by having to evaluate these statements that they helped prepare, so therefore, they would be an internal auditor instead of an external auditor like they should be. 3. I believe

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