The bankruptcies of Enron and WorldCom both indicated the occurrence of major audit failures.

Name: The bankruptcies of Enron and WorldCom both indicated the occurrence of major audit failures.
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The massive surprise bankruptcies of Enron in late 2001 and WorldCom several months later suggested major audit failures on the part of the independent auditors.An audit failure means a company's auditor does not detect,or fails to report,that the company's financial reports are not in compliance with GAAP.

The Bankruptcies of Enron and WorldCom Both Indicated the Occurrence