What has been done to strengthen the audit function since the cases occurred?
One of the major act to pass since the cases was The Sarbanes Oxley Act of 2002 (SOX). It helped strengthen the independence rule, increase disclosures to investors, created mandatory partner rotation, and included a cooling off period for auditors seeking to be employed by a client. In addition, SOX created the Public Company Accounting Oversight Board (PCAOB). The PCAOB was created to oversee public company audits, strengthen the audit quality, and impose sanctions to firms violating any rules; just to name a few. As seen in many cases after 2002, the SOX and PCAOB was involved when placing sanctions on firms involved. They are continuing to adopt new standards to enhance the audit function. For instance, the PCAOB is placing a requirement of Critical Audit Matters (CAM) to go into effect in 2019/2020, to be included in audit reports.
***discuss how sox can further prevent public company fraud like Enron/worldcomm**