Enron Corporation

The crisis of confidence on the public accounting handicraft was non something that happened overnight and it is not the fault of one group of population or individuals. The accounting profession is partly to satanic for this crisis, as the obligatory rules, regulations and guidelines were not in place to hold companies and accounting firms responsible for their actions. The wish of regulations also allowed companies to partake in misleading transactions. These transactions were perfectly jural at the mime, Just not necessarily ethical.Companies did not have to be 100% honest when sharing earning results and company structure with shareholders. Arthur Anderson & Co. Was also to blame as they were the accountants for Enron. They were the ones with the expertise who should have known better and looked to fully apologize and disclose what they knew. Andersens commitment is to the shareholders, not to their client and they needed to act in a way and present the statements fairly so that a user could make an informed decision and that the statements presented fairly.Enron is also to blame. They were focused on scratch which is not necessarily a bad thing, except for the fact that they were not forthright In how they were getting there. 5. I imagine there has been a shift in regards to the concept of professionalism in relation to public accounting. aft(prenominal) the Enron crisis, people began to second guess accountants and their work. There was fear that many new(prenominal) scandals and crises would occur. Because of this, the accounting profession had to be much to a greater extent cautious and proactive In their approach.They have to err much more on the emplacement of caution and pay close attention to ensure they are ceaselessly acting ethically, responsibly and In the financial statement users ruff Interest. This Is where SOX and new(prenominal) acts of Congress come Into play. It Is not to punish the auditors, just now to help them and new(prenominal) accountants keep their reputation and ensure that firms are acting appropriately. It limits the engagement between and auditor and client and helps to ensure all understand the laws and expectations that are applicable to each arty.People are paying attention to auditing and audit firms now more than perpetually, the auditors and accountants know this and must be more diligent and professional than ever so that another scandal Like Enron does not occur. 6. I reckon every quarter financial statements should be audited as a company could be deceiving shareholders for a full year prior to an auditor uncovering something. In the case of public companies, auditors are probably do some character of audit work year round so that would be rare, but Is possible.Currently auditors do not have any accountability regarding quarter land up financial statements as they are unedited and an auditor Is always unless responsible for the fairness of audited statements not the statements themselves. I do not believe users of statements can make the best decision based on unedited figures. Thing, except for the fact that they were not forthright in how they were getting there. guarded 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