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    Enron Scandal and Shareholders

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    In the wake of the Enron scandal, shareholders are tightening the screws on audit committees.

    After reviewing the Enron article,

    1) What does "tightening the screws on audit committees" mean?

    2) Why are audit committees being targeted?

    See the attached file.

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    Solution Preview

    1) What does "tightening the screws on audit committees" mean?

    The accounting/auditing firm that was in charge of conducting the Enron audits was raking in so much money (we're talking millions of dollars) each year in providing other services to clients, that the auditors actually became one of the biggest group of suspects in the Enron case. The audit firm didn't want to lose millions in fees, so they basically turned their ...

    Solution Summary

    The solution discusses what "tightening the screws on audit committees" means.