Enron as a Symptom of Audit Process Breakdown: Can the Sarbanes-Oxley Act Cure the Disease?

Document Type

Article

Comments

Published by Elsevier in Critical Perspectives on Accounting, volume 15 issues 6-7, pages 853-864.

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Keywords

Sarbanes-Oxley Act;Enron;Audit process

Publisher

Elsevier

Publication Source

Critical Perspectives on Accounting

Abstract

This paper presents a model of the auditor’s misstatement detection and reporting process, which consists of three steps: (1) awareness of the transaction, (2) recognition that the transaction’s accounting treatment results in a misstatement, and (3) a willingness to modify the audit opinion to disclose the nature of misstatement if management does not correct the misstatements.

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