The Enron debacle, followed by accounting scandals and bankruptcies at WorldCom and Adelphia, created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. Various parties and institutions bear some degree of direct or indirect responsibility for this “crisis of confidence.”
a. List five parties or institutions (not specific individuals) that are primarily responsible for this “crisis of confidence” in the public accounting profession and the independent audit function.
b. State the justification for each party or institution listed.
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