• Home
  • Subjects
  • Finance & Accounting
  • Auditing. The series of scandals caused a general crisis of confidence in the integrity of the entire system of corporate accoun

Auditing. The series of scandals caused a general crisis of confidence in the integrity of the entire system of corporate accoun - Essay Example

Only on StudentShare

Extract of sample
Auditing. The series of scandals caused a general crisis of confidence in the integrity of the entire system of corporate accoun

Thereafter the author described financial scandals as those corporate scandals that involve misappropriation and misuse of money or economic resources. The chronicles of business history are filled with errors related to accounting, judgements, financial management and financial skulduggery. Over the last few decades unscrupulous entrepreneurs have been heavily involved in financial scandals where they allegedly diverted funds from one stated use to another, paid dividends out of borrowed money or capital, traded stocks on the basis of insider information as well as concealed vital information regarding those stocks, practiced creative account thereby altering the company’s records so on and so forth. Auditing failure has been a major concern over the last two decades with case of Enron and WorldCom coming into the limelight. According to Tackett, Wolf and Claypool (2004), a severe distortion in the financial statements that has not been reported in the audit report can be termed as audit failure. Thus the auditor has committed a serious mistake while conducting the auditing process (Arens, 2002). Normally, auditing failure would not happen if an auditor is abide by the Generally Accepted Auditing Standards despite the fact whether the financial statement is accurate or fair. ...Show more


Increasing the Effectiveness in Auditing Process Introduction Enron’s failure in 2001 and other corporate scandals that came into the limelight in 2002 and henceforth have diminished the confidence, that people had all over the world, in financial reporting, auditing and other corporate governance practices (Ivaschenko, 2004)…
Author : geraldgorczany
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Auditing. The series of scandals caused a general crisis of confidence in the integrity of the entire system of corporate accoun"
with a personal 20% discount.
Grab the best paper

Related Essays

Analysis of the Present Position of Jools Furniture Ltd.
Liquidity which is defined by Lawrence J. Gitman(2005) in these words “A firm’s ability to satisfy its short term obligations as they come due”(p.58). It is one of the most important financial indicators of a firm. A firm which will not be able to satisfy its short term obligations will not be able to satisfy its long term obligations
15 pages (3750 words) Essay
Finance and Accounting Research Paper: Corporate Financial Scandals
The company was formed in 1985 by Kenneth Lay, after the merger of Houston natural gas and inter-north. It was a natural gas, energy trading, and electrical utilities company which was based in Houston Texas. Before its bankruptcy, Enron employed roughly 21,000 people.
11 pages (2750 words) Research Paper
Auditing,governance and scandals
By the year 2007, the company had a net income, standing well over 6 billion, and offered employment to 93,000 people globally (Boyd, 2011 p83). Nevertheless, its financial muscles and extemporary economic performance does not make it immune to problems, notably financial crisis and scandals that rocked the company starting 2003, all the way to 2005.
3 pages (750 words) Coursework
Ethics in Accounting and Corporate Accounting Scandals
The example of corporate accounting scandals that occurred over the years have been analyzed to find the impacts of unethical accounting practices in such cases. This helped to explain the importance of ethical accounting practices in the companies. The accountability of the accountants and auditors in providing true financial disclosures for protection of the investors has been emphasized in this research.
8 pages (2000 words) Research Paper
It is also used by the investors in their decision making process, related to purchase or sell of the securities. The auditors guide the investors and owners in their decision making process. The effective utilization of financial statements requires understanding of the functions of auditors as well.
7 pages (1750 words) Essay
Auditing. PARMALAT COMPANY. The series of scandals caused a general crisis of confidence in the integrity of the entire system o
Parmalat had changed its external auditor from Grant Thornton to Deloitte Touche in 1999. However, the Italian law states that changes within the audit firms has to occur only in a gap of every nine years and the previous auditor can only be consulted for auditing concerns related to the firm (Stoltenberg, Dey and Lys, 2008).
8 pages (2000 words) Essay
Similarly, managements have taken strategies to ensure accountability in the use of funds in order to create a strong positive relationship with the shareholders. One of practice that firms use to ensure reliable financial information is auditing. Auditing entails a systematic examination of records, financial performance, and statements.
6 pages (1500 words) Essay
Recent incidences of corporate or banking scandals
Conclusion Personal opinion The government should intervene and dictate the relationship that the politicians should have when it comes to controlling of public corporations. This also goes for the privately run corporations since politicians have a tendency of poking their noses where it is not necessary.
3 pages (750 words) Essay
The impact of online selling on small businesses.
However, there is a need for the understanding of its impacts on small businesses is important for those businesses that wish to switch from
5 pages (1250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email