Corporate Accounting Scandals Rock Public Confidence

2002 Year-in Review

We entered the year stunned with the bankruptcy of Enron, which was caused by accounting fraud and misdoings within the corporate office. Trillions of dollars of wealth evaporated as the stock market went south in a vote of no confidence by investors in corporate America, in the accountants who audit them, and in the investment houses that recommend them as investments. WorldCom came along by early summer and took over the dubious title of being the biggest accounting scandal in US history. By year-end, the list of corporate accounting scandals swelled to include other corporate giants such as Adelphia, AOL, K-Mart, Xerox, Qwest, ImClone, Dynegy, Global Crossing, Peregrine, and Tyco. The public watched as CEOs and CFOs were handcuffed, arrested and hauled off to jail in an attempt to reassure the public that the government is looking out for the public's interest. Capping the year was Time Magazine's naming of "The Whistleblowers" as their choice for "Persons of The Year."

Related Articles

02/05/02 The 'Angel of Accounting Death' Looms on Wall Street

06/26/02 Andersen Embroiled in $4 Billion WorldCom Accounting Fraud

06/28/02 Adelphia Goes Into Bankruptcy as Deloitte's Role is Questioned

08/16/02 AOL Swears To Financials But Warns of Accounting Errors

08/21/02 Accounting Scandals Take a Toll on Bank Lending Practices

09/16/02 SEC Charges Former Tyco Officers With Fraud

11/25/02 Ex-Peregrine Official Pleads Guilty to Fraud Charges

12/24/02 Time Names Whistle-Blowers as Persons of The Year

Continue "2002: The Year in Review."

Go to item | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | Next >>

You may like these other stories...

As the volume of account reconciliations continues to surge, most corporate accounting and finance departments in the United States and Canada are still using a labor-intensive process to make sure their accounts’...
The average starting salary for students graduating this year with a business major – including accounting – has declined slightly over the last year, according to the latest salary survey from the National...
No matter how much we may want to put them on hold, we all have projects at work we need to start, right? Well, according to a recent survey of human resources (HR) managers by Accountemps, the most productive day of the...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.