How the Enron scandal destroyed Arthur Andersen, ended one of the world’s largest accounting firms and turned the Big Five into the Big Four
The investor lesson is how early the incentive failure showed up. Once a gatekeeper becomes economically dependent on the client it is meant to challenge, the risk starts rising long before the accounting breaks.
Very well put. Audit independence needs to be protected at all costs.
The investor lesson is how early the incentive failure showed up. Once a gatekeeper becomes economically dependent on the client it is meant to challenge, the risk starts rising long before the accounting breaks.
Very well put. Audit independence needs to be protected at all costs.