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The individual assignment aims to give you an understanding of real life auditing issues and an appreciation of the link between theory and practice. It further aims to foster your research, critical analysis and communication skills. Read the chapter The Cult in Culture (pp 37 – 68) in Final Accounting (2003) by Toffler, B.L. Please see link on Moodle site.
Your essay should cover the following:
The Enron collapse in the USA raised several issues with regard to Auditor Independence.
a) discuss three audit issues (such as independence, due diligence and valuation) that arose during the Enron collapse
b) critically discuss the relevance (if any) of Barbara Toffler’s description of working at Arthur Andersen to the issues that you discussed in (a) above.
Students must reference at least 8 academic journals (and 2 or more newspaper or professional accounting magazine articles), applicable audit standard(s) if they are relevant. Students should also identify any other standards or references to the Code of Ethics for Professional Accountants, which should have enabled the auditor(s) to identify and address the problems in the Enron Audit. Less than 10 references will be considered insufficient.
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