Conducted by FEI between February 12 and February 14, the poll -- "Crisis in Governance, Accounting and Financial Reporting" -- indicates finance professionals, that include controllers, treasurers and CFOs, are split on what caused the Enron bankruptcy. Twenty-five percent said it was an ethical and fiduciary failure by management, 20 percent said it was the result of oversight failure by the board, 17 percent said it was audit committee ineffectiveness, and 16 percent said it was a lack of auditor independence.

Over 3,000 FEI members were invited to partake in the survey, and a little more than 10 percent responded.

Respondents expressed their thoughts on which reforms would most improve the accounting and financial reporting crisis. Eighty-eight percent indicated harsher penalties for executives, directors and auditors who fail to properly discharge their responsibilities would be helpful. In a close second, 87 percent believe increased disclosure of the major risks and assumptions built into financial statements proprosed by the Securities and Exchange Commission would be a positive step.

Over half -- 56 percent -- said a new regulatory organization independent of the AICPA and Big Five accounting firms should oversee audit quality assurance and discipline.

The majority of those surveyed felt recommended reforms such as goverment-mandated auditor rotation and SEC control of accounting standards are not good ideas.

Respondents overwhelmingly support the proposed requirement that all off-balance sheet debt be disclosed. In contrast, respondents were split on whether management should give more information about future free cash flow estimates in corporate financials.

Chief among the respondents' suggestions for improving financial filings was easier to understand statements -- putting them in "plain English," as one respondent said. Some recommendations made by those polled included more education for investors on how to read a statement, language that is clear to "non-accountants," and shorter statements.

Full results of the poll are in the March 11, 2002 issue of BusinessWeek, available in print and online.

In January, FEI hosted a Webcast designed to help professionals understand the accounting and finance issues pertaining to Enron. An overview of this Webcast is available on SmartPros.

To add your voice to Letters to the Editor, write editor@smartpros.com. All letters become the property of SmartPros and may be edited for space, clarity, relevance and fairness upon publication. Read the most recent Letters to the Editor.