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If the financial statement contains fraud and irregularities, independent auditor should discover and report it to the proper authority. For the Enron case, Anderson breaches the duty to warn, as they know there is fraud and major error in the financial statements, which is the overstatement of the profits. As if they have warn the clients, even Enron had done nothing, Anderson should report to the proper authority, however, they did not report this. Even worse, Anderson issues an unqualified report. Besides, Anderson was unknown one- half of the SPE which showed Anderson was lack of competence...
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