auditors' failure to detect financial statement fraud?

Question

I am doing an essay which required argurments with relevant articles.

Answer 1

The article Arthur Andersen, APRA contributed to HIH failure
is one relevant article for your essay. (1st link)

The article Andersen guilty in Enron case is another article for you. (2nd link)

The article Andersen settles WorldCom case is another one. (3rd link)

One last one Global Crossing Auditors Step Aside (4th link)

Answer 2

Sir, I know one history where in the fraud done by an accountant was not noticed by the auditor for several years.
At last when another director joined in the company the auditor of the new director has found the mistakes that was running for several back years. In those days the bank used to give the statement in hand writing.Out of over confidence the bank used to give the bank ledger to the company accountant. He used to make and omit the entries as he wants. He has swallowed several lakhs of Rupees. But the company feared to take action on him because the accountant knows in and out of all secret transactions. His mode of fraud is he used to prepare two cheques for single bill and he will send one to the party.Another one he will encash in the bank.