The question that presented itself fairly quickly to my adolescent mind was: what is the Lied?
It should be noted that the diurnal variation of ion temperature presents fairly "wave-like" patterns in April and October.
The part that was not presented fairly was not material.
When Waste Management refused to make changes, Andersen concluded that the overstatements were not material, a decision that was crucial since the audit opinion states that financial reports "present fairly, in all material respects," the company's financial position.
Next, what to do with negative feedback that's not angry, and is presented fairly and professionally?
The auditor's letter in every annual report certifies that the statements therein "present fairly, in all material respects, the financial position" of the company, "in conformity with accounting principles generally accepted in the United States of America".
Their primary task is to investigate the company's accounting data and methods carefully enough to permit them to give their opinion that the financial statements present fairly the company's position, results, and cash flows.
But Ernst was mute, unwilling to either defend its work or discuss how it had reached its now-questioned conclusion that the financial statements "present fairly" the company's condition.
And, as the early SEC did, one that fairly presents information that is relevant, reliable, and decision-useful.
It should be recalled that in this experiment the participants presented fairly mild personal problems, and that the outcome assessments were only through questionnaires.
The other stated its opinion that Enron's financial reports "present fairly, in all material respects, the financial condition" of the company and its subsidiaries.
