We are always talking about political or celebrity scandals, but has anyone of you mentioned what are the latest accounting scandals in the US and who were the actors? Probably not, because as soon we hear about some financial scandal, we are already blaming the person for stealing it without even paying attention to real costs. So, in order to clean some people’s names, today we are focusing on the latest accounting scandals in the US and the hidden plots behind them.
Every big company has to have trustworthy people who will take care of all financial features. This means counting the salaries, company’s offshore and inside expenses, cleaning up the budget, stashing the black fund for the worse case scenarios, paying off debts, and taking care of taxes and fees towards the government. If you give someone such a power, it is only logical that this person has to be the person you can trust and rely on. But the problem with bigger companies is that they can’t hire only one person to do all these chores, which is why you have to have the whole team in this department with at least one trustworthy leader.
But handling big piles of money makes people greedy and the biggest problem that occurs is those big companies don’t notice any fraud until it’s too late. When they get the notes about the whole financial crash, they are already either bankrupt or got into some big scandal. Do you know how many times has happened that owners and directors of big companies became aware of their financial crushes and frauds after they’ve heard about it from the reporters and by that time, it had already became the big and already published news. Sometimes, on the other hand, owners and directors are aware of the whole thing and are usually the initiators that took this big step in order to increase the company’s worth.
These scandals appear in specific periods and until now, no one seems to figure out the pattern. The latest one on our list isn’t the latest one in general, but it is the bigger one and it took place back in 2012, when financial executives used deceptive income tax accounting, which resulted in company’s earnings increase for about $900.
This wasn’t the only scandal in this field, and probably not the worse if you want to find out the rest, check out 10 biggest accounting scandals in America that Insider Monkey researched so far.
