Ethics Article Review -- Enron and Beyond: Whats the Worldcoming To? Free Essay, Term Paper and Book Report
Ethics Article Review
Title of the article: Enron and Beyond: Whats the Worldcoming To?
A. Briefly summarize the article: This article written by William Thomas and Thomas Morris (2003) discusses the Enron and WorldCom accounting scandals. In April of 2002, internal auditors discovered a $9 billion fraud. Unlike Enron, WorldCom had improperly reported capitalized expenses (Albrecht, Stice, Stice, & Swain, 2005). This was the largest amount of accounting fraud in U.S. history. Arthur Andersen was the accounting firm that was involved in both of these accounting scandals. This indiscretion caused the stock market to plummet, and many people lost thousands of dollars. Executives profited from this accounting fraud. The revelation of accounting fraud sent shockwaves through the investment community. Thousands of people lost much of their lives' savings in these accounting scandals. The devastation of this fraud and others caused President Bush to take a tough stance on corporate fraud. In 2002, the Sarbenes-Oxley Act was born. The hope is that this act will assist in restori......
Word Count: 1575
Page Count: 6.3 (250 words a page / double spaced)
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