Monday, February 06, 2006
Corporate accounting is getting exciting
The collapse of companies like Enron and WorldCom stirred primal fears among investors that the system was rigged. It's one thing to worry about rising oil prices or next month's unemployment report but quite another to question whether several years of corporate income statements or balance sheets were falsified.
Unreliable accounting is something you associate with Third World countries. It often goes hand in hand with political unrest, corrupt legal systems and capital controls. It wasn't supposed to happen here. Americans took accounting integrity for granted, if they thought about it at all, until the scandals.
posted by Brian Moran @ 8:56 AM