Aug. 13, 2002

Companies Should Be Candid SEC About Accounting Irregularities

Focus Column - By William E. Simpson - The epidemic of accounting abuses by corporations has shaken investors' confidence in the accuracy of corporate financial reporting. Notable recent examples include Xerox Corp.'s restatement of more than $6 billion in revenues, WorldCom Inc.'s mischaracterization of $3.85 billion in expenses and the collapse of Enron Corp.