Accounting Scandals


Sarbanes Oxley Act
SAS 99
Fraud Information
Accounting Scandals
Accounting Info Sources


Accounting scandals such as Enron, WorldCom and Arthur Andersen have triggered new expectations for governance in the accounting profession throughout the world. These scandals have created serious credibility crisis in corporate governance, accounting and reporting. In the United States,  the Sarbanes-Oxley Act (SOX) was passed into law on July 30, 2002 to help restore confidence in the capital markets. It reforms corporate governance based on integrity and  accountability. It refocuses the accounting profession back to its roots of independence and fiduciary duties to the public interest.

What went wrong in these high profile companies? What are the implications for the future of the accounting profession? Find out what really happened in these accounting scandals. We can learn together from other's mistakes and avoid future accounting failures.




Congressional hearings and documents related to Enron

Archive - Schedule for Congressional Hearings on Enron Situation as of July 2, 2002

Enron's problems was caused by the failure of the board of directors and management oversight, misuse of special purpose entities (SPE), related party transactions and disclosures, weak or nonexistent internal controls and audit failure. Congressional hearings including transcripts, documents submitted for the hearings, audio files of testimonies and related matters are available on this site.

The Powers Report - February 1, 2002

The findings of Enron’s special investigative committee with respect to certain transactions between Enron and certain of its current and former officers and employees.

This report was prepared by a three member subcommittee of the board. It was chaired by William Powers Jr., Dean of the University of Texas Law School. He  served on this special committee between September 2001 and February 2002 to investigate related-party transactions that ultimately resulted in several financial restatements. The full report is over 200 pages and can be downloaded in full or in eight sections.

Table of Contents

Executive Summary
I Background: Enron and Special Purpose Entities
III LJM History and Governance
IV Rhythms Netconnections
V The Raptors
VI Other Transactions with LJM
VII Oversight by the Board of Directors and Management
VIII Related-Party Disclosure Issues

The Briefing Book on Enron

The Rise and Fall of Enron

Accounting Failures CPE course

This excellent course is offered through the Center for Continuing Professional Education.

Background and summary of what happened at Enron.  (Maintained by Web sites. [Currently not available]

The Real Lessons in the Enron Implosion 




Arthur Andersen Indictment

CNN news_andersen_verdict

October 16 2001 e-mail from Andersen's attorney Nancy Temple to Partner David Duncan

Andersen On Trial

Houston Chronicle Trial_Special Report_and Supreme Court to hear Andersen appeal in 2005-e-mail Registration required


The Forbes Corporate Scandal Sheet 8/26/02 





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This site was last updated 06/28/08