Recent Question/Assignment
Background:
Mr. Dewey, a Senior Partner of the CPA firm Dewey, Cheatem, & Howe, after noting that many positivist-accounting theorists and rightwing economists recommend that general purpose financial statements (GPFS) be deregulated and let market forces control the quality of GPFS, has suggested that the role (and revenues) of independent external audit firms will be dramatically enhanced.
Required:
Use the events and outcomes surrounding the collapse of Enron and Arthur Andersen to give insight on this issue in a ½ to 1½ page Memo that is addressed to Mr. Tu Dewie and resolves his concerns.
Mr. Dewey, a Senior Partner of the CPA firm Dewey, Cheatem, & Howe, after noting that many positivist-accounting theorists and rightwing economists recommend that general purpose financial statements (GPFS) be deregulated and let market forces control the quality of GPFS, has suggested that the role (and revenues) of independent external audit firms will be dramatically enhanced.
Required:
Use the events and outcomes surrounding the collapse of Enron and Arthur Andersen to give insight on this issue in a ½ to 1½ page Memo that is addressed to Mr. Tu Dewie and resolves his concerns.
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