Please read the case (attached) and the related questions…always provide your resources…..
Case Questions:
1. In your opinion, did the Public Auditors, Arthur Anderson, of the Enron
Corporation act in a fraudulent manner when failing to uncover the massive
fraud the Enron Corporation?
2. If a management team perpetrates a massive fraud by preparing misleading
financial statements by intentionally misinterpreting the Generally Accepted
Accounting Principles, is it possible for the auditor to uncover the fraud?
3. Describe what you believe the primary difference between Material
Misstatements and Fraud?
4. What do you believe was the primary consequence to the Enron Debacle on
the Auditing Profession?
When answering your case questions…Make sure you include the following aspects of the issues to the questions on the case…
-Describe the issues pertaining to AUDIT RISK & AUDIT Failure
-Why the FRAUD was NOT uncovered.??..Ineffectual Internal Controls…Fraud Triangle Issues?? GAAS ISSUES?
-Was Arthur Andersen a willing party to the FRAUD…or merely negligent?…..
-Did Sarbanes-Oxley (SOX) correct the issues?