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Project 1 - Assignment Example
Finance & Accounting
Pages 4 (1004 words)
Name Institution Enron and Related Party Transactions The senior executives in Enron engaged in deception over a broad scheme to deceive the investigating public by giving much statement about the company’s earnings and their cash flows. The executives were also engaged in concealing debts in relevant filed periodic reports for the commission…
Andersen served as the company’s auditor and he consequently issued an auditor’s report that stated that all-financial statements had been presented fairly with respect to all materials and in accordance to the GAAP. Duncan was the global engagement partner for the Enron’s audits. He held such responsibilities as determining whether an unqualified opinion should be issued within the report of the auditor. The main official responsibility of Duncan was to ensure that all auditors’ reports about the financial statements were relevant and true before he could sign them. Duncan held full responsibility on the approval for all business documents and financial statements and the Enron’s annual reports on the forms 10-k that had been filed with the commission for years 1998 to 200 consecutively. In addition, Duncan was supposed to design and implement auditing procedures that were adequate in addressing the total risks essential in the Enron engagement. He was supposed to perform tests and other procedures to obtain competent and sufficient evident matter. He was supposed to properly supervise the audits for Enron (Markham & Jerry 92). Duncan was responsible for determining whether the unqualified opinions were supposed to be issued within the auditor’s report. For the ended years, however, Duncan did not perform his duty in due diligence. ...
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