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May 31, 2002

The audit report

A discussion of the changing role of independent auditors

In 2001, 158 companies restated earnings, according to an analysis by New York University's Stern School and Financial Executives International. That's three times the number in the mid-1990s. In 1981, there were three such cases. Sobering data, but for the most part the auditing process remained one of sticking with the status quo. Then along came Enron, Global Crossing, and an increasing number of other accounting-related scandals, both in America and across the globe, that are shaking investor

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