Abstract

The intent of this article is to list some of the problems that are systemic to the audit profession and to recommend several possible solutions. During the coming months, the news media will highlight reasons for Enron's failure and reasons specific to the Enron case as to why auditors did not detect Enron's financial problems. The audit profession will attempt to make changes to methodologies specific to Enron and energy trading, but will either consciously choose to avoid the real issues or fail to recognize the systemic problems.

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