The failure of Andersen's audit of Enron can be attributed to all of the following except for:
A)Failure to approach the audit with professional skepticism
B)Lack of audit independence
C)Failure to assign a sufficient number of staff to the audit
D)Having a conflict of interests

Question

Quizplus · Accepted Answer

While there were multiple reasons for the failure of Andersen's audit of Enron, the failure to assign a sufficient number of staff to the audit is not one of them. Andersen actually had a large team of auditors working on the Enron audit, but they failed to uncover the fraud due to other factors such as lack of independence, a conflict of interests, and a failure to approach the audit with professional skepticism.

The Failure of Andersen's Audit of Enron Can Be Attributed