The Failure of Many Auditing Firms to Raise Red Flags

question 40

Multiple Choice

The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all the following factors except the

• A) desire to get future auditing contracts from the company.
• B) desire to get consulting work from the company because most audit firms also do consulting work.
• C) fact that auditors are appointed by the firm.
• D) failure of U.S. audit firms to hire technically qualified professionals.