The real problems associated with audits

The Enron affair questioned the reliability of information given to third parties relating to the accounts of a company and that of the guarantee which an audit brings concerning the accuracy of these accounts. The American system has faults which accelerated the collapse of Enron. Changes to improve the norms and the control of these norms are desirable in Europe as well as in the United States. Reforms are being introduced to align accountancy norms and the rules which apply to them on an international scale, as well as to develop controls within companies, and to ensure the independence and competence of auditors and external administrators. In an increasingly complex economic world, the information given to the audit team, checking the accuracy at every stage, as well as the negotiations between a client and the auditor seem to be key factors in the quality of the results of the audit.