What are some of the motivations for changes in accounting principles, changes i

Question

What are some of the motivations for changes in accounting principles, changes in accounting estimates and accounting errors? What do you think were the major motivations for CEOs, CFOs, Controllers and Accounting personnel committing financial statement fraud in the many recent debacles like Enron, Worldcom, HealthSouth, Global Crossing, Xerox, Tenet Healthcare, Qwest, Fannie Mae, Freddie Mac, Computer Associates, Halliburton and the many others?

Do you think there may be different motivations depending upon the accounting level of the person?

Explanation / Answer

There are changes in accounting principles over time in order to provide more internal control. The major motivations that these companies and high-level executives committed fraud is most likely power, and also greed. When loopholes are discovered it's easy to believe you can get away with it.

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