Collection: Lesson from Enron

© 2002 Ameri kitty Accounting Association Accounting Horizons Vol. 16 no 2 June 2002 pp.153-156 Lessons from Enron James A. Largay III, Editor Some of you know that I chip in been the Arthur Andersen & Co. Alumni Professor of Accounting at Lehigh University since 1982. A few pass on know that my relationship with Andersen goes tolerate to 1963, when, as an imdergraduate, I was recruited by Fred Zimmer for a pass internship in Andersens Chicago office. The legendary Leonard Spacek was just finishing up as Andersens managing partner. Thus, the string of embarrassments afflicting Andersen^ photocopy Management, Sunbeam, Boston Chicken, Global Crossings, the Baptist al-Qaida of Arizona, and Enron^hits me particularly hard. A catchment basin Event I am not alone in finding the Enron tragedy to be highly instructive, the kind of washstand event that comes along at a time in a times or so, the jaws of the kind of calamity from which victorythe good secern ofthe score b arter force be snatched. Below I outline some of the lessons to be learned but do not claim to wee-wee originated them. Most observers are nearly aware of the pressures exerted upon the accountancy profession in its role as the public watchdog investors rely and the countervailing indicator to corporate financial-reporting interests.

Enron is hardly the latest, most vivid archetype ofthe confiuence and intensity of those pressures. Accounting Does not Cause Companies to Implode, But... Public accountants do not make their clients watchfulness decisions. Instead, they advise on accounting matters and are to object when circumspections financial reports fsdl to provide the transparen cy requisite to alert the capital markets t! o the innards of the corporations activities. We understand that the information management wants to report regarding their performance can differ from the information investors take on to make investment decisions. We too understand how the notion of countervailing power advanced by crapper Kenneth...If you want to get a full essay, order it on our website: OrderEssay.net

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