cool, macho frat party gut ivited to this really uclean and Peter Elkind, The Smartest Guys in the Room: The Amazing Rise ond scandiaious Cynthia |. Smith, Lorna McDougal, and William R. Yeack, Inside Arthur ethany or of Enron (New York: Penguin Group, 2003), p. 145. Fall of Enron (N ARTPHONE F Saddle River, Nl: Prentice Hall, 2003), p. 126. Thot Destroyed Faith in Corporate America (New York: HarperBusiness, 2003), p. 289. s sthny McLean and Peter Elkind, The Smartest Guys in the Room: The Amazing Rise and Andses s smith and John R. Emshiwiller, 24 Days: How Two Wall Street journol Reporters Uncovered - Revie e Vider u Fall of Enron (Penguin Group, 2003), p. 146. cRoberts, "Ties to Enron Blinded Andersen," Chicago Tribune, September 3, 2002 Scandalous Accessed from Factiva (February 3, 2004). Case Questions 1. Consult PCAOB Ethics and Independence Rule 3520. What is auditor independence, and what is its signi difference between independence in appearance and independence in fact? ficance to the audit profession? What is the 2. Refer to Section 201 of SARBOX. Identify the services provided by Arthur Andersen that are no longer allowed to be performed. Do you believe that Section 201 was needed? Why or why not