According to Business Ethics (2012), "Accounting ethics is an important topic

because accountants are the key employees who access the financial
information of individuals and entities." This power also includes the potential
to manipulate data or misuse information in order to improve company
perceptions or impose earnings management.
Unfortunately, not all accounting professionals can be trusted. Public and
private trust are often violated, and moral quandaries are not always
successfully resolved. This is what happened in the Enron and Arthur
Andersen case, and they will talk in this forum about the conflicts of interest
that have happened and how we can avoid them, a change in the law to fix the
issues that have arisen, and when to share regulatory decisions relating to
accounting matters with shareholders.
Enron's financial issues started in mid-October 2001 when the business
revealed losses estimated at 638 million dollars. As a result of trades it did that
weren't documented in the records, the third quarter of the same year saw a
1.6 billion dollar decline in the value of its shares.
Five years of auditing the company's financial records, from 1996 to 2001,
revealed undisclosed debts totaling $2.6 billion and losses estimated at $586
million. America at the time, and even though the business was profitable,
losses were being passed on to the stockholders (Benson et al., 2002).
Arthur Anderson, a financial auditor, was complicit in Enron's demise since he
received $25 million in compensation for auditing the company's books while
getting $27 million for consulting services for the same organization in the
same year.
To achieve the amount of independence that is truly required, I believe the
situation would have been better if the authorities had outlawed non-audit
services offered to audit customers.
The Board of Directors assigned a company subcommittee the responsibility of
reviewing the deals the company entered into, but the committee only gave
those deals a cursory examination. In addition, the Board of Directors withheld
very crucial information that, if known, would have allowed it to take the
necessary action. Make certain that all auditors have received instruction in
and training on ethical business practices.
To win and keep investors' trust, there must be a set of relevant legal rules,
such as the creation of the Oversight Board for Public Accounting Companies
to oversee accounting firms and win back investors' faith in independent
auditors' reports.
Reducing the sanctions imposed on people or organizations who falsify, alter,
or conceal documents from supervisory committees
By revealing data at three dimensional levels, accounting sustainability
connects business initiatives from a sustainable framework (environmental,
economic and social). And how it affects the commercial environment.
On issues that have substantial financial repercussions and regulatory actions
that have an influence on sustainability and finances, stakeholders may be
informed.
References:
Benson, G. & Scott, K. (2002). Enron and Accounting Issues. AEI Shadow
Financial Regulatory Committee.
Retrieved from https://www.aei.org/articles/enron-and-accounting-issues/
Business Ethics. (2012). Business Ethics. Creative Common Publisher
Retrieved from
http://2012books.lardbucket.org/books/business-ethics/index.html