Essay: Rectification of Accounting Issues
The problems mentioned and the steps taken to rectify them have been seen widely as influential in terms of getting back investor confidence in the financial statements of corporations and making sure that more accurate representation is made available to the users of these statements.
This has been augmented in the improvement of corporate governance by reports such as the Cadbury report (Boyd 1996). This was significant in terms of requiring compliance to be part of the listing requirements for public limited companies which puts the responsibility squarely on the management for taking care of the compliance. Another hallmark was the emphasis on sub committees such as those for executive remuneration and audit. This put the decision making of crucial areas such as the compensation management enjoyed in a specific block, allowing it to be monitored. It further made audit committees separate, allowing an internal avenue for reporting of fraud and money laundering.
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