Auditing standardsFirst, the Enron crisis revealed a key problem: the quality of auditing standards. Auditing inspections, investigations, and enforcementIn addition, the PCAOB is tasked with inspecting and investigating auditing firms for compliance with auditing standards and, when necessary, bringing enforcement actions. The work to improve auditing standards, coupled with rigorous enforcement of auditor’s professional and ethical requirements, is essential for investor protection. In many cases, including Enron, audit firms had lucrative consulting engagements with the companies they were auditing. More than 50 jurisdictions have complied with the requirements that the PCAOB inspect audit firms of U.S.-listed companies based in their borders.

Source: New York Times July 27, 2022 17:25 UTC