Part 1: Demand of adequate Assurance: (15 marks) In 2002, the audit firm Arthur Andersen 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.

b. Explain auditors understanding of corporate governance revision, update and arguments after SOX Act (2002) (10 marks)