Causes as to why accountants are inept of producing authentic reports resulting to corporate scandal?
Is it because they are still humans? Who commit mistakes??
is it because of deficit of proper lessons?
Answers:
Accountants are not bred to be brave. The one’s that standout receive fired. Accounting firms that certify companies reports - ably the one’s that would report the truth don’t get hold of hired surrounded by the first place. Accountants are accountants.
The problem is the associates committing the fraud don’t receive punished satisfactory. The accountants administer and reconcile accounts.
Don’t blame the messenger.
And the fraud man committed is not a mistake.
The problems weren't accountants making mistakes or anyone inept.
Most of these scandal be due to pressure from the upper regulation to show positive growth, revenue, and liability contained by the financial statements. The front vein auditors and accountants identified heaps of these problems and be told to hang on to it hush.
Simply put, various of the audit firms be lately too cozy next to their clients. For example, Arthur Andersen be the audit firm for Enron. They also made profoundly of money from Enron on consulting services. Telling Enron that their financial reports be wrong would result in them to lose millions within audit and consulting fees. So they looked the other approach on some "creative" accounting.
It is devastating for a company to own an adverse audit report so they will do everything they can to seize the auditor's approval for their reports. In yesteryear, that expected some funny business or creative accounting. Now, nearby are oodles more rules and regulations. Audit firms must be changed after every few years. Audit requirements are much more stringent. Audit firms can no longer provide other services to their audit clients because it creates a conflict of interest. I don't give attention to we will be seeing these problems in the adjectives.
Another contributing problem be that technology developments and worldwide expansion be creating accounting situations that have never be see previously and within be no clear rules governing them. As current rules and guidelines be created, some companies found they have be doing things incorrectly and have to turn vertebrae to correct prehistoric statements.
So, at hand are closely of contributing factor contained by these scandal but they be not cause by inept accountants. More close to top direction.
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is it because of deficit of proper lessons?
Answers:
Accountants are not bred to be brave. The one’s that standout receive fired. Accounting firms that certify companies reports - ably the one’s that would report the truth don’t get hold of hired surrounded by the first place. Accountants are accountants.
The problem is the associates committing the fraud don’t receive punished satisfactory. The accountants administer and reconcile accounts.
Don’t blame the messenger.
And the fraud man committed is not a mistake.
The problems weren't accountants making mistakes or anyone inept.
Most of these scandal be due to pressure from the upper regulation to show positive growth, revenue, and liability contained by the financial statements. The front vein auditors and accountants identified heaps of these problems and be told to hang on to it hush.
Simply put, various of the audit firms be lately too cozy next to their clients. For example, Arthur Andersen be the audit firm for Enron. They also made profoundly of money from Enron on consulting services. Telling Enron that their financial reports be wrong would result in them to lose millions within audit and consulting fees. So they looked the other approach on some "creative" accounting.
It is devastating for a company to own an adverse audit report so they will do everything they can to seize the auditor's approval for their reports. In yesteryear, that expected some funny business or creative accounting. Now, nearby are oodles more rules and regulations. Audit firms must be changed after every few years. Audit requirements are much more stringent. Audit firms can no longer provide other services to their audit clients because it creates a conflict of interest. I don't give attention to we will be seeing these problems in the adjectives.
Another contributing problem be that technology developments and worldwide expansion be creating accounting situations that have never be see previously and within be no clear rules governing them. As current rules and guidelines be created, some companies found they have be doing things incorrectly and have to turn vertebrae to correct prehistoric statements.
So, at hand are closely of contributing factor contained by these scandal but they be not cause by inept accountants. More close to top direction.