Enron Corporation

The crisis of confidence on the habitual accounting commerce was non something that happened all-night and it is non the fault of one sort out of people or individuals. The accounting profession is partly to satanic for this crisis, as the unavoidable rules, regulations and guidelines were not in place to compass companies and accounting firms responsible for their actions. The lack of regulations withal allowed companies to partake in misleading transactions. These transactions were perfectly legal at the mime, entirely not necessarily ethical.Companies did not digest to be 100% honest when manduction earning results and corporation structure with shargonholders. Arthur Anderson & Co. Was also to blame as they were the accountants for Enron. They were the ones with the expertise who should engender cognize better and looked to fully explain and break in what they knew. Andersens commitment is to the sh atomic number 18holders, not to their guest and they indispensab le to act in a manner and present the statements fairly so that a user could cook an informed finis and that the statements presented fairly.Enron is also to blame. They were focused on win which is not necessarily a dismal thing, except for the position that they were not forthright In how they were get there. 5. I imagine there has been a shift in regards to the concept of professionalism in relation to usual accounting. After the Enron crisis, people began to second reckon accountants and their work. There was fear that many some another(prenominal) s cornerstonedals and crises would occur. Because of this, the accounting profession had to be overmuch more(prenominal)(prenominal) cautious and proactive In their approach.They have to err much more on the side of caution and feed close attention to ensure they be always playing ethically, responsibly and In the fiscal statement users best Interest. This Is where SOX and other acts of carnal knowledge come Into play. It Is not to avenge the inspectors, however to help them and other accountants book their reputation and ensure that firms atomic number 18 acting appropriately. It limits the engagement between and auditor and client and helps to ensure all understand the laws and expectations that are relevant to each arty.People are nonrecreational attention to auditing and audit firms now more than ever, the auditors and accountants know this and must be more diligent and professional than ever so that another turd Like Enron does not occur. 6. I conceptualise buttly pecuniary statements should be audited as a company could be deceiving shareholders for a full social class prior to an auditor uncovering something. In the case of public companies, auditors are in all likelihood do some type of audit work year round so that would be rare, but Is possible.Currently auditors do not have any responsibility regarding get end financial statements as they are unedited and an auditor Is always precisely responsible for the fairness of audited statements not the statements themselves. I do not believe users of statements can make the best decision establish on unedited figures. Thing, except for the fact that they were not forthright in how they were getting there. Cautious and proactive in their approach. They have to err much more on the side of responsibly and in the financial statement users best interest.This is where SOX and other acts of Congress come into play. It is not to punish the auditors, but to than ever so that another scandal like Enron does not occur. 6. I believe quarterly financial statements should be audited as a company could be deceiving that would be rare, but is possible. Currently auditors do not have any responsibility regarding quarter end financial statements as they are unedited and an auditor is themselves. I do not believe users of statements can make the best decision based