ABSTRACT
Companies such as Enron and WorldCom are well known for their ethical scandals. Both companies engaged in fraud and used questionable accounting practices to inflate their financial records. Both companies had senior executives and top management involved in such unethical transactions. Consequently, both companies suffered, resulting in tremendous losses for a substantial number of people. Employees lost their jobs and years of retirement savings. Investors lost billions of U.S. dollars after their shares became worthless. Both companies also led to the demise of their accounting auditors. These auditors were blamed for turning a blind eye to these accounting improprieties and for not doing their job properly.
