ArticleHowToAvoidAnAccountingScandal - How to Avoid an...

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How to Avoid an Accounting Scandal Recruiters offer three tips for maintaining your integrity. Jennifer Caplan , May 14, 2001 Lernout & Hauspie. Lucent Technologies. Xerox. Sunbeam. Critical Path. It seems like every week, another company is being investigated for accounting irregularities. In fact, accounting-fraud cases accounted for about 20 percent of the SEC's roughly 500 enforcement cases last year. Charges were filed against 26 companies, 19 chief executives, and 19 chief financial officers in 2000. Now, it's very rare for a CEO to walk into a CFO's office and say, "Let's fudge the numbers." Rather, accounting transgressions unfold rather slowly and subtley. Initially, they fail the smell test more than anything else as management tries to meet their projections or Wall Street expectations. "In this environment, CFOs may be asked by CEOs to do things that in their conscience they don't think is right," concedes Walter Williams, a managing partner at Clarity Partners, a boutique executive search firm that focuses on financial executives. Many CFOs are thus faced with a difficult dilemma. Do they leave a job that challenges
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ArticleHowToAvoidAnAccountingScandal - How to Avoid an...

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