Discussion - Why Weren't the Misstatements of Enron and WorldCom Caught?

Address the following question:

Now that you have been working on the accounting equation and the balance sheet for a few days, it seems to be pretty straight forward, right? No great mysteries here. So if everything is so straight forward, if we have principles such as GAAP and other guidance ... why weren't the misstatements of Enron and WorldCom caught?

Your initial post should address the main question.

Then you must respond to a minimum of two posts of your fellow students.

• Provide additional information to the discussion that would be informative;
• Elaborate and expand on previous comments from others;
• Present explanations of concepts or methods to help fellow students;
• Present reasons for or against a topic in a persuasive fashion;
• Share yourown experiences that relate to the topic;
• Share a URL website with other students as an explanation for an area you researched on the Internet.

1. 1page
2. Well Written
3. APA 6th addition rules

REFERENCE:

Text: Financial Accounting: Tools for Business Decision Making
Author: Kimmel, Weygandt, Kieso
Publisher: Wiley
Ed/Year: 7th/2013
ISBN-13 (hard cover): 978-1118162286
ISBN (e-text): 978-1118562178.