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

Exercise 6

Several of the Waste Management accounting personnel were formerly employed by the company's auditor, Arthur Andersen. What are the risks associated with allowing former auditors to work for a client in key accounting positions Research Section 206 of the Sarbanes-Oxley Act of 2002 and provide a brief summary of the restrictions related to the ability of a public company to hire accounting personnel who were formerly employed by the company's audit firm.