Use the Fact Situation in Q1 to Answer the Related

question 15

Essay

Use the fact situation in Q1 to answer the related question that follows.
Based on the Enron situation,a question arises as to how inflated financial reporting occurs.To better understand this,consider that large public corporations retain top-tier accounting firms who are well aware of established standards for proper completion of financial statements and reports.If this is the case,and the accountants for such corporations inflate financial statements and reports,should not these accountants also be held liable for misleading the public?

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Definitions:

Conscious Awareness

Pertains to the state of being aware of one's thoughts, feelings, and environment in the present moment.

Automatic Behavior

Actions performed with little to no conscious thought, often due to habits or innate reflexes.

Compulsive Craving

An uncontrollable and intense desire for a particular substance or experience, often associated with addiction.

Addiction

Compulsive drug craving and use, despite adverse consequences.