EY signed off on Lehmans use of Repo 105 to show less leverage and appear healthier financially. Immediately after the publication of their quarterly financial statements and armed with this favorable financial picture of their balance sheet, Lehman went into the open market and secured loans. The proceeds would then be used to repurchase the assets at 105 percent of the cash amount received.

Describe the similarities and the differences between the failures at Enron/Andersen and Lehman Brothers/EY.

Pick one of the following statements and make the best possible argument to support your choice. You must provide at least three distinct reasons to support your choice.

The failures at Enron/Andersen have caused more long-term damage to the accounting profession than the failure at Lehman Brothers/EY.

The failures at Lehman Brothers/EY have caused more long-term damage to the accounting profession than the failure at Enron/Andersen.

Under 500 words!