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This posting addresses the accounting scandals in the 2000's

1. Have the scandals of the early 2000s helped managers prioritize ethics? Explain.
2. Have we learned our lesson as a society? Explain.
3. Do we now have sufficient checks and balances in place to prevent the crises of the 1990s and early 2000s? Explain.
4. What else can be done to reduce the likelihood of unethical abuses? Explain.

Solution Preview

1. I do agree that the scandals that took place have helped managers prioritize ethics to a greater extent. I think that professional bodies like the SEC and the AICPA have taken the lead and made ethics a priority, which has served as a role model for managers. I think the problem does still exist, but there are enough proactive steps in place, like the SEC's Whistleblower Program, that encourage managers and others in the business community to follow strict ethical guidelines. I do feel that managers now question more freely, and more confidently, when they are asked by an executive or someone on the board of directors to manipulate data that the manager knows would be a violation of both the law and ethics.

2. I think we're getting there as a society, and we're definitely a lot further ahead ...

Solution Summary

The solution provides a detailed discussion of the accounting scandals that took place in the early 2000's, and the impact they had on prioritizing ethics. Lessons learned, unethical abuses, and checks and balance systems are also discussed.

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