[hole_n_one]

Thanks for that answer..........

Which leads me to this comment........

It would seem that it would be quite commonplace for the type of fraud you mention to occur, unless of course, the deterent is the subsequent audit that ensures the integrity of the sale/transfer.

.........and a question...........

How does the "auditor" get chosen?

Did Enron know in advance who was to perform the audit?

[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.....but it's usually price which determines choice....though the spate of mergers among CPA firms..remember the BIG 8??..now the BIG 5..soon to be the BIG 4....has redusced the number of bidders......I recall the old quote from Neil Armstong, when he was asked his thoughts before he took off to be the first man to land on the moon...."I'm sitting atop this huge rocket, consisting of several million parts, EACH one built by the LOWEST bidder......."........ regards.

[hole_n_one]

......and if each sale/transfer requires an audit, there must have been 10-20, 300-400 audits done.

All performed by one firm...........Arthur Anderson?

[ken5050]

Forgot the first part....normal practice would be to try and get sevral bids to determine the fair price....if Enron didn't, then the auditor should do so...remember Billy Sol Estes,and the empty silos of soybean oil,,,a huge fraud..no one looked inside....all the auditors had to do was get out the dipstick....