Question: How could the auditor, Arthur Andersen in this case, have performed Enron s audits and not caught the fraud? Is it possible for a financial

How could the auditor, Arthur Andersen in this case, have performed Enron

s audits and not caught the fraud? Is it possible for a financial statement auditor to perform an audit in compliance with generally accepted auditing standards

(

GAAS

)

and not catch major financial statement fraud? How would GAAS auditing need to change to guarantee that all frauds are caught?

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