Auditing firms need an overhaul

Enron’s fall came after wealth-seeking directors roped in Arthur Andersen LLP as both consultant and auditor. (Reuters)

COMMENT
There has been a rise in the number of global corporate scandals, which has led to huge financial losses and increasing calls for the greater independence of auditors and a better understanding of their role.
Most of these scandals have involved a failure of corporate governance and auditing processes, and accountancy procedures that have been compromised.