After Enron: Issues for boards and audit committees to consider

In light of the circumstances resulting in Enron's bankruptcy, many boards of directors and audit committees are reexamining their own reporting and oversight practices. Boards and audit committees should focus on how things could go wrong at their own companies, not on how things went wrong at Enron. They should begin by understanding their companies' financial and business risks. Armed with this knowledge, audit committees can reexamine existing policies to provide appropriate procedures addressing critical areas and accounting practices. Once sound procedures are in place, of course, they must be appropriately followed.