In addition to unambiguous responsibilities, the fact of AA violated the principal of independency also existed because there were close relationships and interest conflicts between AA’s employees and Enron’s executives. The audit partner, David Duncan, who was in charge of the Enron account and was a close personal friend of Enron’s chief accounting officer. Meanwhile, there were many management-levels of Enron from AA. For example, in 2000, seven AA auditors joined Enron (Jennings, 2009, p.355). In additional, there are many permanent offices at Enron available to AA employees, and also many AA employees kept close relationships with the staff in Enron. All of these facts affected the independence of auditors from AA.
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