Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.13/918574

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Title
Scandals
Author/Creator
Lee, Thomas A.;  Clarke, Frank L.;  Dean, Graeme W.
Institution
The University of Newcastle. Faculty of Business & Law, Newcastle Business School
Description
This chapter examines accounting scandals in the history of corporate financial reporting that threaten its credibility as a viable means of protecting stakeholders from corrupt senior managers. The first section addresses the effectiveness of accounting as a system of governance instrumentation. Corporate failures provide impetus for successive revisions of accounting standards intended to remove perceived malpractices. Paradoxically, however, they appear to have had the opposite effect. Instead of increasing the extent to which financial statements reveal wealth and financial progress, they have spawned greater problems, institutionalising tensions in the social function of accounting. The second section examines recurring issues, evaluating the effectiveness of auditing in detecting material fraud by senior corporate managers. It analyses the responses of the state and the public accountancy profession to accounting scandals over many decades and in several jurisdictions, examining the credibility of audit as a means of protecting stakeholders from corrupt senior managers. Through instances of fraudulent reporting, it reveals auditors denying or limiting their responsibility to detect material accounting misstatement by dominant senior managers upon whose honesty they rely.
Relation
The Routledge Companion to Accounting History p. 408-429
Relation
Routledge Companions
Relation
http://www.routledge.com/books/details/9780415410946
Date
2009
Publisher
Routledge
Keyword(s)
corporate finance;  corruption;  financial reporting;  auditing
Resource Type
book chapter
Identifier
http://hdl.handle.net/1959.13/918574
Identifier
ISBN:9780415410946
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Subject
"Scandals"
 
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