NCJ Number
200313
Journal
Risk Management: An International Journal Volume: 5 Issue: 2 Dated: 2003 Pages: 17-26
Date Published
2003
Length
10 pages
Annotation
Using Enron as a case study, this article examines the limitations of detecting corporate fraud through an auditing process.
Abstract
In order to explore the limitations of the auditing process on its ability to uncover corporate fraud, the author examines the historical development of the accounting profession, the legal context in which it operates, and the incongruous corporate colonization within government and financial regulation. The author also examines whether the transnational nature of corporate operations helps to disguise corporate misdeeds and raise the largest corporations to a level of operations that functions beyond the law. The author concludes that the current difficulty in regulating large, transnational corporations is rooted in the regulatory structure itself, not in the transnational nature of the corporations. Indeed, the author contends that governmental agencies are capable of exercising control over large corporations, but lack the regulatory structure necessary to do so. References, notes