In recent years, quite a few companies have been involved in highly publicized accounting scandals simply because they did not follow GAAP principles. It is important to study companies involved in such scandals to learn from their mistakes and prevent future ones.

Visit the following website on the ten worst corporate accounting scandals of all time:

https://corporatefinanceinstitute.com/resources/knowledge/other/top-accounting-scandals/ (Links to an external site.)

(Links to an external site.) Select one of the scandals that interest you on this site.

create a one-to-two page report to address the following questions:

• What was the name of the company involved in the scandal you chose?
• What was the accounting scandal? What wrongdoing occurred?
• Specifically, which one of the four accounting GAAP principles did the company violate?
• Why do you think this principle was violated? Explain your answer.
• In the financial statements, there are several accounts: assets, liabilities, equity, revenue, and expense. What account type was involved in this scandal? For example, did they overstate revenue, did they understate expenses, etc.?
• How was the company penalized? Do you think the penalty was enough to prevent future scandals?
• What additional penalty would you have applied? Explain your answer.