NECESSITY OF INTERNAL CONTROL AND INTERNAL AUDIT MECHANISM: ENRON CASE

The case of Enron is a case that has not only affected the US but the whole world as of the period it was experienced. The necessity of internal control and internal control systems to be freed from superficiality and professionally came to the agenda. Internal audit can be considered as the adventure of preparing enterprises for external audit. Failure to take necessary measures to strengthen the internal audit and control infrastructures leaves irreparable damage in the enterprises. This situation, which causes the manipulation of financial information, has prepared an environment for writing international accounting standards. Although manipulative accounting movements seem to be able to increase profitability and number of investors in the short term in the long term, it is clear that there is a spark sparking bankruptcy. Businesses should review their internal control systems. Business continuity should look for a way to continue its activities. Looking at the content of auditing standards it is observed that internal control and internal audit are closely related to all stakeholders, especially business managers. With this study, the importance of internal audit and internal control systems in the audit activities will be presented in the case of Enron case.