Introduction
There have been cases of corporate scandals in the recent past including the Enron, Tyco, WorldCom, and Global Crossing to name a few. These scandals fueled concerns regarding the financial reporting standards not only in the USA but also in economies where the financial markets tumbled as a consequence of the news of such scandals becoming public. These scandals arose because of weaknesses in internal controls and lack of independence by external auditors. For instance in the Enron, case, the external audit firm known as Arthur Andersen was criticized for lack of independence both in fact and appearance. The ...