Reference no: EM133180914

Questions -

Q1. Charles Dickens, the great 19th-century British author, did not think too favorably of accountants - although his father was an accountant. For Dickens, the accountant had been reduced to a good-hearted but hapless clerk, a malicious swindler, or a nightmarish bureaucrat. There were the Scrooges of the world, and then there was the good, honest clerk like Bob Cratchit (both from A Christmas Carol). Why did Dickens hold these views? Were they justified?

Q2. In what is arguably the most significant irony noted in The Reckoning, Arthur Andersen (the man, not the firm that later became notorious as Enron's auditors) was meticulous about ethics, insisting that auditors answer first and foremost to investors. "To preserve the integrity of his reports," Andersen insisted, "the accountant must insist upon absolute independence of judgment and action." Andersen also disagreed, however, with British accountants regarding an accountant's role. Andersen felt that accountants should act as consultants to their firms as well as auditors, helping business grow as well as auditing their financial statements. As we all know, U.S. accounting quickly pivoted towards Andersen's view.

Discuss the implications of the profession adding the consulting role to its list of offerings to clients.