Hello, I am looking for someone to write an essay on Finance for business decision. It needs to be at least 1000 words.
As such the role of external auditors, regulatory agencies as well as credit rating agencies become critical because they need to highlight the information which may be detrimental for the interests of the shareholders. The overall role of the external monitors therefore should be up to taking care of the fact that the firm reports all the relevant and pertinent information which may have an impact on the decision making ability of the investors.
The case of Enron is considered as one of the leading examples where the external monitors of the firm failed to carry out their responsibilities. The Enron was finally liquidated and the investors lost their money owing to the fraudulent accounting practices of the firm which went unnoticed by the firm’s auditors as well as external agencies.