Since the beginning of the twenty-first century international and national governments, including the UK, have expended significant time and effort in developing, implementing and revising financial reporting and auditing standards designed to increase the accuracy and reliability and validity of corporate financial statements.
In the wake of the spate of corporate failures and the
financial consequences that occurred around the beginning of
the twenty-first century, of which Enron, Polly Peck and
WorldCom were among the most notable, International
governments and regulators focused on the development of
more stringent regulations that were specifically aimed at
reducing the occurrence of these dramatic and costly events
in the future. This essay examines these regulations and the
issues and concerns that still surround them.