Discuss the responsibilities of board of directors and audit committee

What are the main findings of empirical studies with regard to the relation between audit report and lending decisions?
December 25, 2020
How do you evaluate the impact of performing such services on auditor independence, his/her performance and audit quality?
December 25, 2020

1. In recent years, there has been an increasing number of legal actions against external auditors particularly with regard to public companies. In your opinion, what are the reasons for this? Discuss.

2. A series of business scandals in the US (Enron, WorldCom, Tyco, Adelphia, etc.) and in the European financial markets (Royal Ahold in the Netherlands, Vivendi in France, Parmalat in Italy, etc.) have shaken the world capital markets. The auditors have been publicly criticized by market regulators. Discuss the responsibilities of (a) management, (b) external auditors, (c) board of directors and audit committee, and (d) regulators, in corporate financial failures.