Accounting statements can be manipulated

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Accounting statements can be manipulated. Please try to give an argument pro and con on this ethical issue. Any actual public examples you would like to cite would be most appreciated by all. Scenario: Enron utilized Special Purpose Entities (SPE) in the Cayman Islands to significantly improve its sales and income. AIG and others have used offshore insurance contracts to “smooth out” their earnings. Is it unethical if these corporations enter into a contract with a non-related corporation to accomplish these goals? Explain

Reference no: EM131130189

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