I would like to start before diving into the details of this accounting scandals, take a look at some of the tools that were used to first detect them which is include the sophisticated accounting systems and etc. Information technology which brought high tech computerization, digital storage and communication became very sophisticated, which made possible the accumulation of gathering of information in an instant. Recording and verification of accounting transactions in real time were made easier and more accurate, which facilitated the reconciliation of supporting documents versus sources, with very little effort needed.
Federal regulators were provided with data that revealed the corrupt practices of high-profile companies and their CEOs. Their bankruptcies became inevitable as the Securities and Exchange Commission (SEC) and financial analysts began to see the signs of irregularities among numerous companies. When the SEC ordered the restatement of their financial reports in accordance with the GAAP rules, it turned out that these companies were mostly founded by inflated revenues and negative financial conditions. Short after, companies reputations and financial credibility began break like bubbles, in the wake of the ensuing investigations. The result of these action caused investors once again lost their trust and confidence in America’s publicly traded companies, which eventually led to more bankruptcies. As a result, multitudes became jobless, and the trend went from bad to worse throughout the decade. these accounting anomalies was the heart of all that frauds. The accountancy profession and the role it plays came into focus. Accountants have helped in misleading the public by certifying and endorsing that the financial reports of fraudulent companies were all

true and 100% correct. Investors placed their faith in the accompanying audit reports, which