Accounting Scandals: The ENRON Scandal in 2001 assets or profits of the company, when a company actually incurs a loss. These fraudulent records are then used to seek investments in the company's bond or securities issues. By posting these false entries, the company attempts to apply fraudulent loan applications as a last attempt to save the company by obtaining more money from bankruptcy. Accounting fraud is actually intended to hide the company's real financial problems. A clear example of accounting fraud is deliberately overvaluing a company's assets in order to increase its stock price. Another example is the financial problems that kept the company from collapsing. One of the biggest accounting frauds in history occurred during the Enron scandal in 2001. Accounting ethics are difficult to police because accountants and auditors must keep the public interest in mind while by remaining employed by the company they are auditing. Accountants must consider how best to apply accounting standards when the company faces problems related to financial losses. The role of the accountant is crucial for society. Their main constraint is the public interest. The information provided is essential to help managers, investors and others make critical economic decisions. An accountant is responsible for any fraudulent financial reporting. Some examples of fraudulent reporting include: • Manipulation, falsification (counterfeiting) or alteration of accounting records or documents from which financial statements are prepared. • False declaration in the middle of a paper......stock turnover turned out to be very low. Low inventory turnover was an indicator of insufficiency, since inventory generally has a zero rate of return (Inventory Turnover Ratio Interpretation, 2009). This also meant either poor sales or excess inventory. A low turnover rate indicated low liquidity, obvious overstocking and obsolescence, but it would also have reflected planned stockpiling in the event of a shortage of materials or in anticipation of a rapid rise in prices. (Interpretation of Inventory Turnover Rate, 2009) And an unexplained rapid increase in the number of sales per day of receivables in addition to an increase in inventory to cover the shortage was noted. The interviewee (public accountant) could smell something suspicious, which led to more detailed procedures and a proactive investigation where fraud was detected..

Essay / Accounting Scandals: The ENRON Scandal in 2001 assets or profits of the company, when a company actually incurs a loss. These fraudulent records are then used to seek investments in the company's bond or securities issues. By posting these false entries, the company attempts to apply fraudulent loan applications as a last attempt to save the company by obtaining more money from bankruptcy. Accounting fraud is actually intended to hide the company's real financial problems. A clear example of accounting fraud is deliberately overvaluing a company's assets in order to increase its stock price. Another example is the financial problems that kept the company from collapsing. One of the biggest accounting frauds in history occurred during the Enron scandal in 2001. Accounting ethics are difficult to police because accountants and auditors must keep the public interest in mind while by remaining employed by the company they are auditing. Accountants must consider how best to apply accounting standards when the company faces problems related to financial losses. The role of the accountant is crucial for society. Their main constraint is the public interest. The information provided is essential to help managers, investors and others make critical economic decisions. An accountant is responsible for any fraudulent financial reporting. Some examples of fraudulent reporting include: • Manipulation, falsification (counterfeiting) or alteration of accounting records or documents from which financial statements are prepared. • False declaration in the middle of a paper......stock turnover turned out to be very low. Low inventory turnover was an indicator of insufficiency, since inventory generally has a zero rate of return (Inventory Turnover Ratio Interpretation, 2009). This also meant either poor sales or excess inventory. A low turnover rate indicated low liquidity, obvious overstocking and obsolescence, but it would also have reflected planned stockpiling in the event of a shortage of materials or in anticipation of a rapid rise in prices. (Interpretation of Inventory Turnover Rate, 2009) And an unexplained rapid increase in the number of sales per day of receivables in addition to an increase in inventory to cover the shortage was noted. The interviewee (public accountant) could smell something suspicious, which led to more detailed procedures and a proactive investigation where fraud was detected..

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