Define independence and professional skepticism

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Reference no: EM132860848

The Sarbanes Oxley Act of 2002 was enacted as a reaction to the fraud perpetrated at Enron and the perceived lack of independence and professional skepticism of Anderson's auditors. Discuss the following:

1. Define independence and professional skepticism.

2. Why did regulators believe Anderson's auditors lacked these important professional characteristics?

3. Briefly explain the main change to auditor services enacted by SOX. Why did regulators believe this change would improve auditor independence and professional skepticism?

Reference no: EM132860848

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