Lessons from Corporate Scandals

This chapter investigates the corporate scandals of the early 2000s, particularly the Enron and WorldCom crises driven by accounting fraud. It emphasizes the establishment of the PCAOB in response to these events and the vital role of maintaining audit independence to ensure corporate accountability. Additionally, the chapter warns against proposed budget cuts to oversight bodies, reflecting on historical failures and advocating for strong regulatory safeguards to prevent future financial disasters.