Called to Account traces the evolution of the global public accounting profession through a series of scandals leading to voluntary or mandated reforms. Ever entertaining and educational, the book describes 16 of the most audacious accounting frauds of the last 80 years, and identifies the accounting standards and legislation adopted as a direct consequence of each scandal.

This third edition offers expanded coverage of the Global Financial Crisis and international auditing. While retaining favorite chapters exposing the schemes of "Crazy Eddie" Antar, "Chainsaw Al" Dunlap, and Barry "the Boy Wonder" Minkow, new chapters describe the accounting problems at Lehman Brothers, Colonial Bank, and Olympus. Students will learn that financial fraud is a global problem, and that accounting reform is heavily influenced by politics.

With discussion questions and a chart mapping each chapter to topics covered in popular auditing textbooks, Called to Account is the ideal companion for classes in auditing, fraud examination, advanced accounting, or professional responsibilities.

chapter |2 pages


chapter 1|9 pages

Scandal and reform

part I|26 pages

Birth of a profession

chapter 2|6 pages

Out of darkness

chapter 3|6 pages

Ivar Kreuger

chapter 4|5 pages

McKesson & Robbins

chapter 5|7 pages

Into the spotlight

part II|34 pages

The profession’s principle problem

chapter 6|8 pages

Generally accepted accounting principles

chapter 7|7 pages

National Student Marketing

chapter 8|6 pages

Equity Funding

chapter 9|11 pages

Déjà vu

part III|34 pages

The Savings & Loan crisis

chapter 10|6 pages

It’s a wonderful life?

chapter 11|7 pages

ESM Government Securities

chapter 12|7 pages

Lincoln Savings & Loan

chapter 13|12 pages

Bank robbers

part IV|32 pages

The expectation gap

chapter 14|9 pages

Auditors and fraud

chapter 15|8 pages


chapter 16|6 pages

Crazy Eddie

chapter 17|7 pages

Closing the gap

part V|36 pages

Beginning of the end

chapter 18|9 pages

Auditor independence

chapter 19|8 pages

Waste Management

chapter 20|8 pages


chapter 21|9 pages

End of the millennium

part VI|46 pages

From profession to regulated industry

chapter 22|12 pages


chapter 23|10 pages


chapter 24|10 pages


chapter 25|12 pages

The perfect storm

part VII|32 pages

There’s no place like home

chapter 26|6 pages

Open house

chapter 27|6 pages

Taylor, Bean & Whitaker

chapter 28|9 pages

Lehman Brothers

chapter 29|9 pages

The Great Recession

part VIII|42 pages

The world is flat

chapter 30|8 pages

It’s a small world

chapter 31|8 pages


chapter 32|7 pages


chapter 33|9 pages

As the world turns

chapter 34|8 pages