We already have discussed the context for Enron’s crimes by describing the Roaring Nineties as a period of accounting exaggeration and worse. We then referenced the first SEC filing that confessed some of the crimes by Enron’s managers. In this and the next essay, we turn our attention to the auditor Arthur Andersen; specifically, we [...]
Many of us if asked to recall the details of a past crime or injustice would be hard pressed to do so. Similarly, today’s young accountants all have heard about Enron as example of financial reporting failure. However, as the years pass, the details of this accounting crime also have faded. The tenth anniversary is [...]
Approximately ten years ago, the truth emerged about Enron, that once snappy company with a different business model. As the world learned, we should have focused on the ethics, culture, strategy, and business model of the firm, which unfortunately is a very old story.
Cheating is all around us. Athletics provide a never ending series of ethical disappointments whether it be the use of performance enhancing drugs in bicycling, baseball, and football, the bout fixing in Sumo wrestling, or the recent NCAA rule violations by Ohio State’s football program.
An entire generation has seen their dream of retirement shattered by the failure of the accounting profession. CPAs are supposed to be the “watchdogs” and “gatekeepers” that make sure company financial statements are what they say they are. Instead, the past 15 years have dealt us a “dot-com” crisis, the 2002 financial reporting frauds (with [...]