The early 2000s were a sobering period. The collapses of Enron (2001) and WorldCom (2002) revealed how corporate greed and unethical accounting practices could devastate investors and the public. These scandals shook confidence in the profession and highlighted the urgent need for reform.
In response, the Sarbanes-Oxley Act (SOX) of 2002 was passed, requiring CEOs and CFOs to personally certify financial statements and creating the Public Company Accounting Oversight Board (PCAOB) to oversee auditors. This legislation was significant because it restored trust and accountability, reinforcing that honesty and ethics are at the core of accounting, audit and tax as a profession.
Reflecting on these events, accounting is more than recording transactions - it is about protecting investors, maintaining transparency, and safeguarding the economy. These scandals remind me that even small lapses in judgement can have enormous consequences.
Work carries responsibility not just to companies, but to the public, the markets, and society as a whole.
