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    Accounting Recovery

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    I think that it will take some time for the profession to completely recover from the scandals of the 2000s. While the profession has taken a number of steps to improve perception, I still have a number of clients with huge loss carryovers from the demise of WorldCom. It will take a long time for people to put that behind them. For me, personally, the Arthur Anderson/WorldCom demise was the most disappointing for me because it hit so close to home due to location and number of people I knew employed at both. It was sad to see so many people not choose to do the right thing. We have seen improvements in corporate governance and shareholder protection.

    Do you feel all of the changes since the corporate scandals have encouraged employees to come forward and behave ethically? Is the CPA profession adequately protection shareholders?

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    Solution Preview

    I feel that a lot of the changes since the scandals have encouraged employees to come forward, but not on a big enough scale to make a continued impact. The Sarbanes-Oxley Act has provisions within the act that any person who steps forward, as a whistle blower, is protected under federal law. However, a few years ago, that very aspect of SOX came into question. There were ...

    Solution Summary

    This solution discusses the willingness of employees to come forward, in regards to the changes that have taken place in the accounting profession since the scandals of the early 2000's took place.