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To: ken5050
The auditor is hired by the corporation, usually based on two factors..the lowest bid, and if the head audit partner belong to the same CC as the company CEO....

I must be blanking ... "CC"?

126 posted on 01/11/2002 10:14:00 PM PST by Timesink
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To: Timesink
CC = Country Club
127 posted on 01/11/2002 10:19:21 PM PST by hole_n_one
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To: Timesink
the auditor is hired by the corporation

To be totally accurate, the auditor is hired by the Board of Directors of the corporation. A bid process usually only happens when there is a change of auditor and it is typically awarded to the lowest bidder. However, they are not done on an annual basis. Many corporations retain the same auditor for several years in a row. Don't know what the facts are with Enron. My guess is that AA has been their auditor for some time.

128 posted on 01/11/2002 10:25:26 PM PST by Wphile
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