Accounting Scandals

Accounting Scandals - Accounting Scandals Proper accounting...

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Accounting Scandals Proper accounting methods are more important now than ever before in light of recent corporate scandals. The names of Enron, Arthur Andersen, and WorldCom are enough to bring a shudder to any auditor. The fall of these corporate giants due to unscrupulous accounting practices is one reason that many companies are placing a renewed focus on accountant training and education. Three of the biggest of the “creative accounting” scandals that surfaced in the early 2000s: Enron The fraud that was uncovered in 2001 at this blue chip Energy leader was so egregious that it led to the largest bankruptcy in history, hundreds of employee lay-offs, the dissolution of accounting firm Arthur Andersen, and 16 criminal convictions. Evidence showed that through irregular accounting practices, Enron deliberately hid its debts and losses and falsely reported profit to banks, auditors and shareholders. As the scandal was revealed the company’s stock plunged from $90 to just pennies, causing
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Accounting Scandals - Accounting Scandals Proper accounting...

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