Holmes Institute HI5026 Memo 01 – Semester 02, 2014

Background:

Mr. Dewey, a Senior Partner of the CPA firm

Dewey, Cheatem, & Howe, after noting that

many positivist accounting theorists and rightwing economists recommend that general

purpose financial statements (GPFS) be

deregulated and let market forces control the

quality of GPFS, has expressed concern that

the role (and revenues) of independent external

auditors will be dramatically reduced.

Required:

Use the events and outcomes surrounding the

collapse of Enron and Arthur Andersen to give

insight on this issue in a ½ to 1½ page Memo

that is addressed to Mr. Tu Dewie and resolves

his concerns.

A Full Service Creative Accounting Firm

Loopholes Located Books Juggled Taxes Evaded

Funds Diverted Money Laundered Shortages Hidden

Pensions Plundered Credit Denied Parking Validated

Bankruptcies our Specialty!

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Holmes Institute HI5026 Memo 01 – Semester 02, 2014 Background: Mr. Dewey, a Senior Partner of the CPA firm Dewey, Cheatem, & Howe, after noting that many positivist accounting theorists and right wing economists recommend that general purpose financial statements (GPFS) be deregulated and let market forces control the quality of GPFS, has expressed concern that the role (and revenues) of independent external auditors will be dramatically reduced. Required: Use the events and outcomes surrounding the A Full Service Creative Accounting Firm collapse of Enron and Arthur Andersen to give Loopholes Located Books Juggled Taxes Evaded insight on this issue in a ½ to 1½ page Memo Funds Diverted Money Laundered Shortages Hidden that is addressed to Mr. Tu Dewie and resolves Pensions Plundered Credit Denied Parking Validated his concerns. Bankruptcies our Specialty!

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