Authors: Mark Lokanan
Publishing Journal: Journal of Forensic & Investigative Accounting
Abstract: In a world of corporate scandals and economic difficulties, the need for transparency is becoming ever more apparent. Managers are becoming increasingly cognizant of the demand from stockholders, and they feel pressured into creating the impression that they are operating on a profitable basis. Examples of this attitude are evident in the automobile industry. Following the decrease in automobile sales throughout 2008, General Motors (GM), Chrysler, and Ford asked the United States (U.S.) government for a $50 billion bailout to avoid bankruptcy (U.S. Treasury, 2009). During the following year, both GM and Chrysler filed for bankruptcy and had to be bailed out by the U.S. government (The Economist, 2009).