The bankruptcies of Enron and WorldCom both indicated the occurrence of major audit failures.
Answer the following statement true (T) or false (F)
True
The massive surprise bankruptcies of Enron in late 2001 and WorldCom several months later suggested major audit failures on the part of the independent auditors. An audit failure means a company's auditor does not detect, or fails to report, that the company's financial reports are not in compliance with GAAP.
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Indicate whether the statement is true or false
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Indicate whether the statement is true or false.