In 2002, the audit firm Arthur Andersen (one of the then 'Big 5' audit firms!) collapsed following charges brought against it in the United States relating to the failure of its client, Enron. Some other clients announced that they would be dismissing Arthur Andersen as their auditor even before it was clear that Arthur Andersen would not survive.

Required:

Present an argument of why a similar event is not likely to happen again. Your discussion should be (i) in context of what went wrong with Arthur Anderson/Enron and (ii) make specific references to how regulations and auditing standards have changed since the collapse of Arthur Andersen.

250-300 W