Enron and Equity Funding are companies that suffered from large frauds by corporate management. One important lesson with respect to such cases is that

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The lesson from Enron and Equity Funding is that an investigation of management's integrity is an important factor in the extent of audit work. This highlights the importance of auditing beyond simply verifying financial statements, but also examining the company's internal controls and management practices to ensure they are reliable and trustworthy. Choice A is incorrect as it implies that all successful companies are engaging in fraud which is not necessarily true. Choice C is incorrect as perfection is unrealistic and unattainable for auditors, and the SEC recognizes this fact. Choice D is incorrect as working papers are not sufficient on their own to prove accuracy, but rather they are a tool to document the evidence gathered during the audit process.

Enron and Equity Funding Are Companies That Suffered from Large