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 summer 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 buttocks 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 erst in a times or so, the jaws of the kind of chance from which victorythe good secern ofthe history trad ing office be snatched. Below I outline some of the lessons to be learned but do not claim to ware originated them. Most observers are nearly aware of the pressures exerted upon the accountancy profession in its role as the public watchdog investors swear and the countervailing advocate to corporate financial-reporting interests.

Enron is hardly the latest, most vivid example 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 counsellings financial reports fsdl to provide the transparency take upful to alert the capital markets to the ! innards of the corporations activities. We understand that the information management wants to report regarding their performance can differ from the information investors need 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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