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

Question

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The Asian financial crisis in the late 1990s and the corporate scandals in the United States in this century had a significant impact on the reputation of the auditing profession. Auditors were expected to be the watchdogs of financial reporting integrity, but the high-profile scandals and failures of companies such as Enron and Worldcom eroded public trust in the profession. Therefore, the reputation of being the watchdogs of financial reporting integrity was reduced. Regulations were actually increased in response to these scandals, making it more difficult for auditors to operate. External auditors were not required to sit on boards of directors, and in fact, this would create a conflict of interest.

What Impact Did the Asian Financial Crisis in the Late