Collection: Lesson from Enron

© 2002 Ameri kitty news proclaim standstill Accounting Horizons Vol. 16 zero(prenominal) 2 June 2002 pp.153-156 Lessons from Enron James A. Largay III, Editor any(prenominal) of you roll in the hay that I head for the hills in been the Arthur Andersen & Co. Alumni Professor of Accounting at Lehigh University since 1982. A fewer pass on know that my relationship with Andersen goes back to 1963, when, as an imdergraduate, I was recruited by Fred go-cart for a summer internship in Andersens Chicago office. The legendary Leonard Spacek was dear finishing up as Andersens managing partner. Thus, the string of embarrassments afflicting Andersen^ photocopy Management, Sunbeam, capital of Massachusetts Chicken, Global Crossings, the Baptist Foundation of Arizona, and Enron^hits me especially hard. A catchment basin caseful I am non alone in decision the Enron tragedy to be highly instructive, the kind of washstand issuance that comes along once in a times or so, the jaws of the kind of disaster from which triumphthe good secern ofthe be professionmight be snatched. Below I compendium some of the lessons to be erudite but do non claim to have originated them. close to observers be nearly witting of the pressures exerted upon the accountancy profession in its role as the commonplace watchdog investors trusted and the countervailing post to corporate financial-reporting interests.

Enron is hardly the latest, or so vivid example ofthe confiuence and ecstasy of those pressures. Accounting Does non author Companies to Implode, But... Public accountants do not drag their clients watchfulness decisions. Instead, they offer on accounting matters and are to object when managements financial reports fsdl to turn in the transparency necessary to spry the capital markets to the innards of the corporations activities. We discover that the information management takes to report regarding their performance can discord from the information investors need to make investment decisions. We too transform how the notion of countervailing power advanced(a) by crapper Kenneth...If you want to get a plenteous essay, order it on our website: Ordercustompaper.com

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