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"Corporate Fraud"...when you hear those words the first, most recent incident, many think of is The Enron Scandal. This same scandal produced the Public Company Accounting Reform and Investor Protection Act of 2002. This much needed act created the Public Company Accounting Oversight Board under the Security Exchange Commission's supervision. This board sets accounting standards and investigates Certified Public Accountants and companies to ensure they are following the guidelines set forth. This board has also been given the authorization to fine, suspend and recommend criminal investigations in the event CPA's and their firms violate the standards. (Lindstrom) To understand the stringency of this Act is to recognize what brought it about.
Many, like myself, barely followed along on the nightly CNN reports about a billion-dollar company who filed fraudulent financial statements for five years, Enron. We are used to hearing about such things happening. Companies go bankrupt everyday.…
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