What impact did the Asian financial market crisis in the late 1990s and the corporate scandals in the United States this century have on the auditing profession?

Question

Quizplus · Accepted Answer

The Asian financial market crisis in the late 1990s and the corporate scandals in the United States this century (referring to the 21st century) had a negative impact on the reputation of the auditing profession. The scandals involving Enron, WorldCom, and others eroded public trust in the external auditors' ability to act as the watchdogs of financial reporting integrity. This led to increased scrutiny and demands for reform of auditing practices and regulations. However, there was no reduction in regulation of the external auditing profession, nor were CPAs prohibited from providing external audit services for multinational corporations. External auditors were not required to sit on the boards of directors of multinational corporations either.

What Impact Did the Asian Financial Market Crisis in the Late