Purchase Solution

Accounts Making Sure That Companies Stay Honest 'Post Enron'

Not what you're looking for?

Ask Custom Question

Regardless of how the public perceives the accounting profession as a whole, a recent study suggests that there continues to be a significant disconnect between the perceived responsibility accountants have to their clients and third parties, and their actual responsibilities.

The study, Public Perceptions in a 'Post Enron' World by Camico Mutual Insurance Co. Report (2004), included the following question:

Accountants are responsible for making sure that companies stay honest:

Pre Enron Post Enron
Agree 34% 61%
Neither 25% 10%
Disagree 39% 29%

How does this new perception impact the auditor's job?

Purchase this Solution
Solution Summary

The solution discusses whether accountants are responsible for making sure that companies are honest 'Post Enron.'

Solution Preview

Given the change in perception as to the responsibility of accountants and auditors in ensuring that companies stay honest, ...

Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

View More Free Quizzes
Related BrainMass Solutions

  • Duty and Ethics: Enron

    A lasting effect of Enron is that investors will be more wary of companies that offer aggressive compensation packages for creative financial maneuvers [6]. References [1] Fallon, N. (2014, December 22). What is corporate social responsibility?

  • Enron: Ethical Decision Making

    From the deontological ethical perspective, it was the duty of Enron management to present the correct and honest accounts. It is unethical to use accounting loopholes to manipulate accounts.

  • Managerial Decision Making

    The case of Enron and Arthur Anderson provides similar outcomes of dealing with the accounts. The audited accounts of both the companies were wrongly presented to the Auditors and the Government authorities.

  • Utility Ethics and Enron

    Be sure to cite references ETHICAL ISSUE An ethical issue that Enron raised was in its use of mark-to-market accounting combined with special purpose entities.

  • Article on ethics considerations in financial management

    In other words Berandino is admitting that he and his company took the money but did not do a candid job. Is this honest? Is this ethical?

  • Behind the Enron Scandal

    TASK: Review the history of Enron using the following websites and two additional websites that you find (please cite on reference slide): Washington Post Business Specials (free registration is required) CNN In-Depth Specials Time: Behind

  • Could problems at Enron have been uncovered earlier?

    Example 2: A company understates an accrual for accounts payable through an honest error that was not discovered during the annual audit. The error caused the cost of goods sold to be understated which therefore overstated net income.

  • Business Ethics

    In each of these companies, auditors did not do a sufficient enough job of making sure that accounting statements were accurate and the stakeholders were hurt due to this.

  • Dynamic Decision Making

    The relevance of this article with "Escalation of Commitment and Ethics in Decision Making" is that the traders of Enron and other energy companies were carrying out activities that were against moral worth; however, as they started coming up with strategies

View More Related Solutions