The complete destruction of companies including Arthur Andersen, HealthSouth and Enron has revealed a significant weakness in the US audit system. The significant weakness is the failure to ensure true independence between auditors and their clients. At each of these firms there was a deviation from the rules of professional conduct resulting from client pressure placed on their auditors (Goldman and Barlev 857-859). Over the years, client-auditor relationships have become closely intertwined, sidelining the impartial function of auditors. Auditors' careers depended on their client's success (Kaplan 363-383). Auditors have found themselves in situations that have called into question their profession, causing them to compromise their ethics, professionalism, objectivity and their independence from the company. A vital role in the relationship of trust for independent auditors has been woven into society and this role is essential to the effective functioning of the financial economic system (Guiral, Rogers, Ruiz, and Gonzalo 155-166). However, the financial world has lost confidence in the reliability of audit firms. There are three potential threats to auditor independence: executives who hire and fire auditors, auditors who take client positions rather than impartially, and auditors who provide non-audit services to clients (Moore, Tetlock, Tanlu, and Bazerman 10- 29). the Institute of Internal Auditors, “conflict of interest is a situation in which an internal auditor, who occupies a position of trust, has a competing professional or personal interest (Institute of Internal Auditors)”. Competing interests can make it difficult to impartially fulfill your duties as an auditor. "A perso...... middle of paper ......tion Law 29 (2):363-383. 365-partners and clientsThreats to auditor independence: the impact of economic relationships and ties. By: Ping Ye ; Carson, Elizabeth, Roger. 1, p279-293, 15p, 1 diagram, 3 graphs. DOI: 10.2308/aud.2010.29.1.279Conflict of interest between audit firms: its implications for independence: a response by: Goldman, Arieh, Benzion, Oct75, vol , 3pAuditors are getting too cozy with their clients By: Briloff, Abraham J.. Business & Society Review (00453609), Summer85, Issue? 54