Ethical Accounting Failure: The Enron Scandal Essay

Ethical Accounting Failure: The Enron Scandal Essay

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According to Croxford” Ethical accounting failure has continued to occur in multinational companies in spite of the increased legislation, enhanced corporate governance programs, and greater attention on business ethics by the academic community.” (Croxford, 2010) According to his research, (Croxford, 2010) believed “that accounting professional was discriminated against based on their age, culture, gender, and education.” Multinational corporations have been facing ethical failures scandals for many years. For example: One of the biggest financial scandals was the Enron Scandal. According to (Cohen, Pant, & Sharp, 1993) “the mergers and the international development of the Big Six accounting firms have created new classes of problems for their management.” (Cohen, Pant, & Sharp, 1993) There is a great need for multinational public accounting firms to distinctively consider the impact of international culture diversity on employee ethical compassion and decision making. According to researcher (Cohen, Pant, & Sharp, 1993), “the impact of varies cultures also reinforces the need for extensive use of expatriate management training by accounting firms.” (Cohen, Pant, & Sharp, 1993) When managers are trained properly, the decision making process will improve the benefits of the company. In this paper, we will look at research related to how multinational executive compensation should incorporate more control over their corporate governance and programs, better performance of audit and quality controls, and ethical decisions in multinational countries. The gap in the literature showed poor signs of commitment in management as it is related to business ethics. Research finding shows the agency theory has been the primary foundation fo...


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...lture Based ethical conflicts confronting Multinational Accounting Firms. Accounting Horizons 7.3 .
Croxford, J. (2010). Determinants of Ethical Decision. A Study of Accountants in Multinational Firms .
Kaal, W. (2012). Contingent capital in Executive Compensation. Washington and Lee Law Review 69.4 , 1821-1889.
Low, M., Davey, H., & Hooper, K. P. (2008). Accounting scandals, ethical dilemmas and educational challenges. Critical Perspectives on Accounting, suppl. Chinese Learning19.2 , 222-254.
Richard, R., & Li, J. (n.d.). Corporate Goverance and National Culture. A Multi-Country Study .
Richter, M., Thompson, M., & Richter, A. (1998). Using culture principles to resolve the paradox in International Remuneration. ACA Journal 7.2 , 28-37.
Sundgren, S., & Svanstrom, T. (2013). Audit office size, Audit quality and Audit Pricing. Accounting and Business Research 43.1 .

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