Accounting Scandals

There is an old joke that goes like this:
Q: “How many accountants do you need to change a light bulb?”
A: “Two. One to change the light bulb and another to make sure the first one didn’t steal it.”

With some of the headlines that have been in the news over the past several years, it isn’t hard to understand why this joke and those like it became so popular. Accounting scandals can have some huge consequences to those people that own the company, the employees, the community, etc. as the major accounting scandals will bring down an entire company.

Accounting scandals generally involve the reporting of fictitious financial information such as the amount of revenues or income that a company generates, or burying losses the company has been taking.

Biggest Accounting Scandals

The biggest accounting scandals lately have been seen as those of Enron and WorldCom, however these are far from the only ones that have ever happened. Tyco, HealthSouth, Waste Management, and others have occurred. As a result of so many of these business scandals happening that affected the United States, the government enacted the Sarbanes Oxley legislation to increase regulation of publicly held companies. As the world becomes more global, we are also seeing more of these scandals occur in the emerging markets, as noted with the Satyam scandal in India. Read below for some more information on the scandals!

Enron Accounting Scandal
Worldcom Accounting Scandal
Tyco Accounting Scandal
HealthSouth Accounting Scandal
Waste Management Accounting Scandal
Saytam Accounting Scandal

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