Called to Account
Financial Frauds that Shaped the Accounting Profession, 2nd Edition
Routledge – 2013 – 374 pages
Routledge – 2013 – 374 pages
Called to Account takes a broad perspective on how financial frauds have shaped the public accounting profession by focusing on cases of fraud around the globe. Ever entertaining and educational, the book traces the development of the accounting standards and legislation put in place as a direct consequence of these epic scandals.
The new edition offers updated chapters on ZZZZ Best and Arthur Andersen, plus new chapters devoted to Parmalat, Satyam, and The Great Recession. Through stories like Barry Minkow’s staged constructions sites and MiniScribe’s fake inventory number generating computer program, "Cook Book", students will learn that fraud is nothing new, and that financial reform is heavily influenced by politics.
With discussion questions and a useful chart showing instructors and students how each chapter illustrates the topics covered in other textbooks, Called to Account is the ideal companion for any class in auditing, advanced accounting or forensic accounting.
"Called to Account has been a wonderful addition to my graduate fraud class for several years. The students love Clikeman’s presentation style, with his rich development of the characters driving the frauds. Readers gain a deep understanding of the cycle of fraud and reform that has produced the financial reporting system we see today. With the addition of the Parmalat and Satyam cases, the second edition adds another rich cycle to the story. I highly recommend this book – your students will be entertained and enlightened!" - Dana Hermanson, Kennesaw State University
"Called to Account provides an outstanding, historical perspective on how financial frauds and other important events have shaped the U.S. accounting profession. And the individual case studies covering most of the largest frauds in recent history are both informative and enjoyable to read. As a supplement for an auditing textbook to bring more realism to particular issues, or simply as a great read on how the accounting profession has evolved to its present state, I highly recommend this excellent book." - Dennis Beresford, Ernst & Young Executive Professor, University of Georgia, and Former Chairman of FASB, USA
"Called to Account by Paul Clikeman is one of the all-time best auditing textbooks. Clikeman does an excellent job describing the history of the U.S. auditing profession using the major audit failures. First, he presents some narrative and discussion on the state of the audit profession and then he presents several audit failures. Students are able to see the evolution of the audit profession, and their reactions have been very favorable. Students leave the class with a clear understanding of what can happen if they mechanically perform audits and don't use professional judgment." - Douglas Zeigenfuss, Old Dominion University
"I have used the Called to Account text in my graduate auditing class since its date of original publication. The text has been the impetus for a lot of rich class discussion and students invariably comment in teaching evaluations that the text was one of their favorite aspects of the class. They definitely appreciate the context it provides for understanding how the accounting profession has evolved through scandal and regulation. I can’t wait to incorporate the 2nd edition and its new content into my course." - Susan H. Ivancevich, University of North Carolina Wilmington, USA
"Clikeman has done a superb job of presenting the evolution of accounting through the masterfully told accounts of 16 of the most famous financial frauds. Starting with the Ivar Kreuger matchstick fraud of the early 20th century, Clikeman takes the reader through the major eras of the profession's history, revealing how specific financial scandals provided the stimulus for many key professional, legislative, and regulatory developments. Summing Up: Essential." - F. A. Marino, Assumption College, USA | review published in the Choice (February 2014 Vol. 51 No. 06)
@Contents:Preface 1. Scandal and Reform Part I: Birth of a Profession 2. Out of Darkness 3. Ivar Kreuger 4. McKesson & Robbins 5. Into the Spotlight Part II: The Profession’s Principle Problem 6. Generally Accepted Accounting Principles 7. National Student Marketing 8. Equity Funding 9. Déjà Vu Part III: The Savings & Loan Crisis 10. It’s a Wonderful Life? 11. ESM Government Securities 12. Lincoln Savings & Loan 13. Bank Robbers Part IV: The Expectation Gap 14. Auditors and Fraud 15. ZZZZ Best 16. Crazy Eddie 17. Closing the Gap Part V: The Litigation Crisis 18. Auditors’ Legal Liability 19. Fund of Funds 20. MiniScribe 21. Litigation Reform Part VI: Beginning of the End 22. Auditor Independence 23. Waste Management 24. Sunbeam 25. End of the Millennium Part VII: From Profession to Regulated Industry 26. Professionalism 27. Enron 28. WorldCom 29. The Perfect Storm Part VIII: The World is Flat 30. Global Financial Markets 31. Parmalat 32. Satyam 33. The Great Recession 34. Conclusion Appendix A: Discussion Questions Appendix B: Suggestions for Integrating Called to Account with Popular Auditing Texts
Paul M. Clikeman is Associate Professor of Accounting at the E. Claiborne Robins School of Business at the University of Richmond, USA.