They were required to hire an outside auditor to ensure compliance with the terms of the settlement.

Moves to tighten up on expenses by bringing in outside auditors are being opposed by traditionalists.

They assured investors that they were monitored by outside auditors - all lies, the court papers claim.

But his comments reflect a change of attitude in boardrooms to the historically cushy relationships with outside auditors.

Until the late 1980s, few companies engaged outside auditors, and accounting practices gave corporations room to mislead both the public and the shareholders.