Evaluation of Accounting in Enron, Xerox, Worldcom Scandals

critically evaluate the usance of the account statement profession in late(a) corporate scandalizations such as Enron, Xerox and WorldCom\n\nIt is expected that the account statement profession would play quite an an important role in scandals such as Enron, Xerox, and Worldcom, as all they all wangle with the fiscal accounts non wake a true and median(a) mentation the company. Hence it is the role of accountants to prep ar and check the pecuniary statements. Therefore I ol detailion that in the essay it is worth analyzing who exactly in the accounting system profession was answerable for each(prenominal) action in scandals, and visualize how accountants move easily from watchdogs in their capacity as auditors to be the architects of clever deals and frauds as CFOs and CEOs. (lies diabolical lies)\n\nIn the Statement of Auditing Standards 100, curb on March 1995, we are told that the responsibility for the preparation of the m singletary statements is that of th e directors of the entity. Therefore the auditor is completely creditworthy to act as a watchdog and straighten out sure that the directors of the company meet prepared the statements in harmony to Auditing and Accounting Standards.\n\nAuthur Andersen LLP (Enrons auditors) were then responsible in providing shareholders with reasonable assurance that the financial statements presented a true and fair view of the companys financial position. Consequently one(a) could argue that because they failed to do this that they were whole responsible, as far as the public is concerned, in Enrons scandal. The fact that thousands of pages of documents were shredded proves on itself that Andersen was blameable of fraud, as this is a invasion of the law and Justice Department.\n\nIn response to these accusations Andersen stated that their hardly role in this scandal was to express an opinion on the financial statements prepared by the company, (accountancy age) and in that respectfore w ill hold themselves responsible for any errors in the auditing. In addition to this it has been publicly acknowledged that there was one error of sagacity in the treatment of one partnership (Accountancy Age). Though in another(prenominal) partnership matter, they have defended their grimace in saying that they were not provided with the necessary information by Enron. According to SAS 600 it was Andersens role to set apart the financial statement, and thus retract it if the effect of this limitation of arena was pervasive enough to make the statements as misleading as they were.\n\nHowever the situation was often more complex than...If you requisite to get a overflowing essay, order it on our website:

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