Auditors face firing squad again over Lehman scandal

  • Large scale corporate disasters put auditors in the spotlight again
  • Why did Ernst & Young take no steps to question Lehman Brothers' unusual accounting practices?
  • Ernst & Young says the financial statements were presented in accordance with GAAP
  • How far should the blame rest with the auditors in this case?
The controversy surrounding the demise of Lehman Brothers once again spells trouble for the audit profession. How was such a large investment bank allowed to collapse? Have lessons not been learned from the other well publicised corporate disasters such as Enron?

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