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 statement

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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The failure of Arthur Andersen to detect the fraud at Enron highlights several key issues and challenges in the auditing profession 1 Auditor Independence There were concerns about the independence of ... View full answer

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