Enron Corp. - University of California | Office of The President

970. Due to Andersen's false statements, knowledge of the improper accounting, failure
to identify and modify its reports to identify Enron's false financial reporting, and lack of
independence, Andersen violated the following GAAS standards:
(a) The first general standard is that the audit should be performed by persons
having adequate technical training and proficiency as auditors.
(b) The second general standard is that the auditors should maintain an
independence in mental attitude in all matters relating to the engagement.
(c) The third general standard is that due professional care is to be exercised in
the performance of the audit and preparation of the report.
(d) The first standard of field work is that the audit is to be adequately planned
and that assistants should be properly supervised.
(e) The second standard of field work is that the auditor should obtain a sufficient
understanding of internal controls so as to plan the audit and determine the nature, timing and extent
of tests to be performed.
(f) The third standard of field work is that sufficient, competent, evidential matter
is to be obtained to afford a reasonable basis for an opinion on the financial statements under audit.
(g) The first standard of reporting is that the report state whether the financial
statements are presented in accordance with GAAP.
(h) The second standard of reporting is that the report shall identify circumstances
in which GAAP has not been consistently observed.
(i) The third standard of reporting is that informative disclosures are regarded as
reasonably adequate unless otherwise stated in the report.
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