Another Enron Could Still Happen

The Legacy of Enron, a new survey of auditors from over 40 countries by audit recruitment specialists www.careersinaudit.com reveals that almost half (48%) of auditors feel that another Enron could possibly happen as ëno amount of control can prevent a determined CFO or CEO from committing fraudí.

The report, which collects the audit communityís thoughts on events since Enron, sees an overwhelming 84 per cent of auditors stating that Jeffrey Skilling, the former CEO of Enron, should be imprisoned on October 23rd for his role in the scandal. The survey of over 350 audit professionals also highlights that resulting regulations such as Sarbanes-Oxley are perceived as having a positive effect on the industry.

The resulting demise of Andersenís met with a virtually unanimous response from auditors - the industry feels that it was right that the firm were effectively forced to surrender their licence. 38 per cent said that this also had a positive effect in that it sent out a strong signal to the audit industry.

ìAuditors are happy to acknowledge that Sarbanes-Oxley has had a positive impact on the industry, increasing levels of independence and ethical awareness,î said Max Williamson, CEO of www.careersinaudit.com

Further findings of the Legacy of Enron Report include:

22% of auditors feel that the oil and gas sector is most at risk of future fraud and accounting irregularities.

16% felt that Andersenís dissolution had created a weaker industry with too few large firms

Almost a quarter (23%) say there is a lack of choice for multinationals when choosing an auditor

54 per cent acknowledged that workloads have significantly increased as a result of new regulations

Over a third (34 per cent) state that their role now has greater responsibility

Four years after SOxís introduction over half (54%) feel up to a quarter more auditors are still needed

ìThe legacy of Enron is an industry which acknowledges two major challenges ñ the need for continuous diligence as Sarbanes-Oxley is not seen as a magic bullet and the need to recruit additional people to meet the challenge of regulation.î said Williamson.