The audit failures of both Enron and WorldCom were examples in which the leadership responsibilities for quality work within the accounting firm were overshadowed by fears that losing a key client would
A)result in shareholder losses from reduced company profitability.
B)require additional audit procedures and increase the fees paid by the companies to the accounting firm.
C)negatively influence the results of the firm's inspection.
D)negatively impact individual auditors' performance evaluations.

Question

Quizplus · Accepted Answer

The fear of losing a key client like Enron or WorldCom could negatively impact individual auditors' performance evaluations, as auditors might prioritize client retention over quality and ethical standards.

The Audit Failures of Both Enron and WorldCom Were Examples