FINANACIAL STATEMENT AUDITING LETTER 2022

MEMORANDUM
TO:
SUBJECT: FINANACIAL STATEMENT AUDITING
DATE: 05/02/2020
This memo has been drafted in order to draft the reasons behind the downfall of Enron
and how SPE is associated with the matter. The company has used Special Purpose Entity to sell
off the assets. After the collapse of Enron, the management has decided to follow the principle
based accounting system instead of rule based accounting system since the former is more rigid
and needs proper participation of the management. Lastly, the problem that is needed to be
addressed is the independence issue of the auditors.
[Name]
[Designation]