Over the precedent decades, fraud has been the most important issue facing the Accounting Profession in the United States and all over the World. Financial Statement Fraud causes both economic and social consequences in our society. This paper discussed the fraud in Enron and the role played by its auditors (Arthur Andersen). The financial statement fraud erode public confidence and trust in the accounting and auditing profession. While auditors play crucial role in detecting financial reporting fraud, they sometimes appear to cover up these fraudulent deals. It`s not enough for regulators to set auditing standards for public company auditors, they must be supported by ethnical tones and stringent financial reporting rules to ensure everyone plays by their rule. Auditors need to take a proactive role in detecting and deterring fraud by data analysis techniques.
Accounting, Profession, Fraudulent, Regulators, ethnical
