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Enron Corporation: Impact On Profession Essay

336 words - 2 pages

ACCT 4450 June 2009
Enron Corporation: Impact on Profession of Chartered Accountancy/Auditing

References:
• Case “Enron Corporation and Andersen, LLP – Analyzing the Fall of Two Giants” Beasley et al, Auditing Cases – An Interactive Approach,4th Edition
• Article “After Enron” John Lorinc, CA Magazine, December 2002
• Film excerpt shown in class “Enron: The Smartest Guys in the Room” Peter Elkind & Bethany McLean; Alliance Atlantis

Exercise:
Your group will prepare a presentation to the class (max 5 ...view middle of the document...

3) Assess audit risk at Enron. Explain the factors that contributed to your risk assessment. (Also reference the Arthur Anderson e-mail notes from the retention meeting.)

4) Kenneth Lay, Chairman of the Board and prior CEO, testified at hearings that “I can’t be responsible for things I didn’t know about.” Jeffery Skilling, former CEO also testified that he couldn’t answer questions about some of the accounting as “I am not an accountant.” The Sarbanes-Oxley Act was signed into law in response to Enron and other corporate frauds. Explain some of the provisions of the Act (and similar Canadian Provincial Securities Acts) that address issues raised around external financial statements.

5) What Independence rule(s) in the Rules of Professional Conduct directly address some of the perceived objectivity issues by Enron’s auditors, Arthur Andersen?

6) What happened to Arthur Andersen since Enron issues were exposed in late 2001? What led to this and why?

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