Moving Audits From A Traditional To A Risk Based Approach Accounting Essay-Enron
Recent years saw lots of financial frauds which have led to huge losses borne by innocent investors, creditors, employees, and others. Enron provides dramatic example of how internal control breakdowns and defective and dishonest management and auditing can result in misstated financial statements that ultimately do great harm to national economy. Audit failures meant that the accounting profession is confronted with a crisis of confidence and credibility. Criticism of the profession is widespread and harsh in the changing economic, social and regulatory climate in which the profession at present functions. Audit failures will endanger the existence of the profession and its development in the long run.
In this report we have tried to analyzed critically Enron in USA as the criteria of the assignment. It shows how is climbed dramatically and how it fell within few years of time. We have also tried to show the consequences to abolish the company and what the role of directors, auditors, corporate governance and accounting policies.