Critically evaluate the role of the accountancy profession in recent corporate scandals such as Enron, Xerox and WorldCom.

It is expected that the accountancy handicraft would play quite an whole(a)-important(a) contribution in stains such as Enron, Xerox, and Worldcom, as all they all deal with the monetary accounts non showing a uncoiled and handsome view the come with. indeed it is the role of accountants to cram and ticktock the pecuniary statements. Therefore I feel that in the see it is worth analyzing who ex recreately in the accountancy profession was liable for each action in scandals, and show how accountants shanghai well from guard dogs in their capacity as listeners to being the architects of able deals and frauds as CFOs and CEOs. (lies damn lies) In the Statement of Auditing Standards 100, print on marching harmony 1995, we are told that the responsibility for the provision of the financial statements is that of the directors of the entity. Therefore the attendant is only responsible to act as a watchdog and make sure that the directors of the company have prepared the statements in accordance to Auditing and Accounting Standards. Authur Andersen LLP (Enrons auditors) were whence responsible in providing share obligeers with reasonable assurance that the financial statements presented a true and fair view of the companys financial position.

then(prenominal) one could argue that because they failed to do this that they were entirely responsible, as further as the public is concerned, in Enrons scandal. The fact that thousands of pages of documents were shredded proves on itself that Andersen was guilty of fraud, as this is a violation of the law and lawful expert Department. In response to these accusations Andersen declared that their only role in this scandal was to express an opinion on the financial statements prepared by the company, (accountancy age) and therefore will hold themselves responsible for any errors in the auditing. In addition to this it... If you emergency to get a generous essay, localise it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.