The 12 months 2001 witnessed a series of financial information frauds involving Enron, auditing company Arthur Andersen, the telecommunications enterprise WorldCom, Qwest and Sunbeam, amongst other well-identified firms. These difficulties highlighted the necessity to evaluate the effectiveness of accounting requirements, auditing laws and corporate governance concepts.
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Comparative Review: It helps the businessmen to help keep a systematic file which is able to more help them to match the outcomes of the present 12 months with final results with the past yrs.
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Auditing is the verification of assertions created by others about a payoff, and from the context of accounting it is the "unbiased assessment and analysis on the financial statements of a company".
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