Auditing Cases 6th Edition by Mark Beasley,Frank Buckless,Steven Glover,Douglas Prawitt

Exercise 7

Enron and Andersen suffered severe consequences because of their perceived lack of integrity and damaged reputations. In fact, some people believe the fall of Enron occurred because of a form of "run on the bank." Some argue that Andersen experienced a similar "run on the bank" as many top clients quickly dropped the firm in the wake of Enron's collapse. Is the "run on the bank" analogy valid for both firms Why or why not