There is in intrinsic flaw in the way public auditing works. Auditors are required to maintain independence with the client on whose books they opine. At the same time, they are dependent on them for revenue. Some audit firms in the US (e.g., Arthur Andersen) fell prey to the inability to effectively balance this tenuous relationship. Post-2001, auditor independence was a key driving aspect of tougher securities legislation in the US; however, with the shrinking economy, this has again been compromised. India needs to overhaul its securities and internal control laws, and incorporate auditor independence clauses, among others, to combat “agressive accounting” practices (to borrow an Enron era phrase).