The collapse of Enron has led to a wave of ill-informed comments on the audit profession, particularly as regards independence. We still do not know what actually went wrong at Enron, who was accountable and what lessons can be learned. Nevertheless, there has been a huge logic leap to suggest that because the auditors received significant non-audit fees they must have compromised their independence.
As any chartered accountant knows, independence is a state of mind. There are a number of threats to independence of mind or objectivity, and section 1.201 of the ICAEW Members Handbook sets them ...
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