accounting scandals (e.g., Enron, WorldCom)

Accounting scandals like Enron and WorldCom involve companies deliberately manipulating financial reports to appear more profitable or financially stable than they truly are. This is often achieved through practices such as inflating revenues, hiding debts, or falsifying expenses. The goal is to deceive investors, creditors, and regulators, boosting stock prices or maintaining market confidence. When the deception is revealed, it leads to massive financial losses, legal actions, and a loss of trust. These scandals highlight the importance of transparent and honest accounting practices in maintaining fair and reliable markets.