oboloo Glossary

Major Accounting Scandals

oboloo Glossary

Major Accounting Scandals

Major accounting scandals occur when corporate fraud and unethical financial reporting practices are employed by investors, executives or accountants. They can include things like falsifying balance sheets and income statements, misleading financial disclosures and creative accounting techniques used to hide losses or create the illusion of profits. Regardless of the methods used, these major accounting scandals disrupt the integrity of a company’s financials and may lead to serious legal and economic consequences for all involved. Major accounting scandals can cause long-term harm to businesses and financial markets, which is why it is essential for stakeholders to be aware of ethical practices and take action to prevent such events from occurring.