Accounting Is The Most Boring

1478 WordsDec 10, 20156 Pages
Accounting is commonly depicted as the most boring, yet reliable profession possibly offered in the business school. But what if accountants managed to scam millions? How about billions? Accounting is a seemingly innocuous career, but corporations can manipulate their current financial state and become more appealing to investors with some clever help from their accountants. Accountants could embellish financial statements or secure higher balances for wage expenditures. A typical corporate mistake is improperly segregating duties of employees. If someone has more than one task, such as recording inflow of cash and controlling where it goes, then a chance of embezzlement can occur. Embezzlement is when an employee, usually under good faith, takes a small sum of money to pay personal finances under the guise of paying it back, but does it so often that they eventually get caught by an increased amount of missing cash. The SEC, Securities and Exchange Commission, carefully monitors these conniving, dishonest businesses. To enhance the duties of this agency, President Bush in 2002 signed the Sarbanes-Oxley Act, which dictated that publicly traded companies must maintain adequate internal control systems. Despite the strong reinforcements of regulating agencies such as SEC commissioners and auditors, corporations still manage to circumvent the proper accounting techniques that prevent fraudulent behaviors. Because of the consequences observed from the Enron and WorldCom
Open Document