Define: Accounting Scandals

UK Accounting Glossary

Definition: Accounting Scandals


Quick Summary of Accounting Scandals


Accounting Scandals are instances when corporations have been found responsible for serious breaches of Accounting Ethics.




What is the dictionary definition of Accounting Scandals?

Dictionary Definition


Accounting Scandals are instances when corporations have been found responsible for serious breaches of Accounting Ethics, typically by falsifying or manipulating information so that their financial statements do not provide a true and fair view of the company’s actual performance.


Advertisement



Full Definition of Accounting Scandals


Often, this involves deceptive adjustments to their balance sheets or profit and loss accounts – using methods such as:

  • Hiding expenses.
  • Inflating revenue.
  • Moving debts off-balance-sheet.
  • Manipulating reserves.

Whilst Senior Executives have on occasion used such means for private gain, the objective more often than not is to create a false impression of Corporate success in order to meet the expectations of the financial markets.

One of the most notorious examples of accounting scandals in recent times is the Enrol scandal of 2001, this particular examples effectively demonstrates the devastating impact of both false accounting and failures in auditing.


Advertisement



Accounting Scandals FAQ's


What are corporate accounting scandals?

Accounting scandals are business scandals which arise from intentional manipulation of financial statements with the disclosure of financial misdeeds by trusted executives of corporations or governments.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/accounting-scandals/
Modern Language Association (MLA):
Accounting Scandals. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 21, 2019 https://payrollheaven.com/define/accounting-scandals/.
Chicago Manual of Style (CMS):
Accounting Scandals. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/accounting-scandals/ (accessed: November 21, 2019).
American Psychological Association (APA):
Accounting Scandals. PayrollHeaven.com. Retrieved November 21, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/accounting-scandals/

Definition Sources


Definitions for Accounting Scandals are sourced/syndicated from:


This glossary post was last updated: 27th January 2019.