Corprate America

Corporate America has come uped questionable centering and other argument activities that have often been considered a violation of professional ethics by the people or institutions involved all over the years. despite having well established regulatory institutions such as Securities and diversify Commission, the corporal world in the US has continued to witness huge corporate collapses resulting in massive losses to the put public. In nearly only the cases of the corporate collapses, the role of the autonomous auditors have been questioned. This paper reviews the role of auditors and accountants in fiscal reporting in organizations and the extent to which previous corporate collapses may be attributed to their actions or inactions. It also looks at how the industry regulators and other relevant authorities have so far responded the emerging challenges and the allude of the actions taken to curb the problems identified.
Corporate Malpractices, Collapses and Lessons We Learnt
The collapse of Enron Incorporation in 2001 was by far one of the most dramatic corporate of corporate collapses of the last decade. Prior to its eventual winding up, Enron easily ranked as one of the top ten companies in the US (Clarke & Dean 156).



However, despite the impressive audited financial statements prepared and signed by its external auditors, Arthur Andersen, the company had all along been under serious financial distress, carefully transcendental from the public scrutiny using creative accounting (Barreveld). The game levels of profitability and positive net loss were merely on paper and there were no actual profits or net assets to back this claim. Investigation to the company revealed highly fasten corporate malpractices and sheer greed by the top management that led to the eventual collapse of the company.
In the period amongst 1998 and 2000, Enron recorded in its financial statements an increase in revenues of over 150%, from US$31.3 Billion to...If you want to get a full essay, order it on our website: Ordercustompaper.com



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