Roles of accounting and auditing in obviating the failures of firms

In this study, the concept ?firm? presented in a general framework and its failure reasons, the measures that can be taken to prevent those failures pointed up in headlines. Investigations that held up to now have pointed out that; the significant part of the firm success is provided by the efficiency of the management and management provides that efficiency by the help of correct and reliable information. As it is known, the business function that serves providing correct and inside information to all information users that take place in and outside the environment of the firm is accounting. Therefore, in this study, the role of accounting and auditing that checks the correctness and reliability of the information provided by accounting, handled in principle. For the purpose of pointing out the significance of the issue in practice and being able to see the results of the states without efficient accounting and auditing systems, the American energy giant Enron?s collapse handled substantially.