Essays on Analysis of Traditional Accountants and Business Professionals by Carnegie and Napier Article

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The paper 'Analysis of Traditional Accountants and Business Professionals by Carnegie and Napier" is a good example of finance and accounting article.   Accounting forms the backbone in the operations of profit-making and non-profit making corporations. Accounting forms a foundation under which financial institutions operate, able to evaluate their financial standing and its capacity to borrow. Moreover, the firm is able to find out its position against competitors and its ability to stand against the financial, legal, political, social and economic crisis. Good accounting can only be achieved by honesty, accountability and reliability of accountants, auditors and proper accounting frameworks in an organization (Gottschalk, 2010).

Thus, the aim of this paper is to analyse and discuss the article presented by Carnegie and Napier. Objectives Accounting as a discipline and practice underwent a historic transformation after the collapse of Enron Company which was closely followed by the downfall of the WorldCom due to bankruptcy necessitated by accounting malpractices, thus opening a Pandora’ s Box in issues relating to auditing and financial reporting (Carnegie & Napier, 2010). This resulted in the public lacking confidence in auditing, accounting practices, financial reporting and regulations and legislations reinforced in corporations.

The objectives of the study are primarily to evaluate the importance of auditors being honest, trusted and having integrity, and the pressure they get involved in caving into corporate manipulation. The second objective is to analyze how far accounting should indulge in consultancy services. Independence of auditors and the importance of having standardized financial reporting forms the third objective of the study. The final objective of the study is the importance of books, articles and opinions presented not only by professional accountants but by financial analysts, journalists, among others. Bodies of Literature used by Carnegie and Napier in their Article Carnegie and Napier in their article the traditional accountants and business professionals: Portraying the accounting profession after Enron have used materials from books and contents from other journals to support their arguments and the outcomes of the downfall of Enron, evaluating the principles guiding accounting practice, and the integrity and ethics in financial reporting, auditing and regulations in corporations (Carnegie & Napier, 2010).

According to a column titled ‘ the man who put auditing first’ written by Parker in the Financial Times, the book ‘ fat cats and running dogs; the Enron stage of capitalism’ authored by Prashad, and the article ‘ inside Arthur Andersen: shifting values, unexpected consequences’ written by Squires, McDougal and Yeack, describes auditing as a process that was used to favour a few in the expense of a broader public (Squires, et al. , 2003).

According to the authors, the auditor Andersen shredding the financial statements of Enron although done according to document retention policies in the firm, or to protect the public was seen as misconduct in part of a traditional auditor who is supposed to act in the interest of the public (Prashad, 2002). In order to understand the identity of accountants, the practice of auditing, the image of accounting in pre and post-Enron era, and how the public’ s perception of accounting has changed, Carnegie and Napier, identified four categories of books written to explain it.

Moreover, analyze the conduct of Andersen. They are the books with an insider account, where an individual present during the running and fall of Enron or who had direct contact or transaction with Andersen.

The other categories of books are books with journalistic accounts derived from direct interviews, court proceedings, and press articles and cuttings obtained by reporters. Books with scholarly reflections are the third group that entails opinions and arguments by academics. The fourth category is books based on opportunistic authors who used Enron in their topics and titles or highlighted it in passing, as a marketing strategy to sell their books (Parker, 2005).


Bougen, P. D. (1994). Joking apart: the serious side to the accountant stereotype. Accounting, Organizations and Society, 19, 319-335.

Carnegie, G. & Napier, C. (2010). Traditional accountants and business professionals: Portraying the accounting profession after Enron. Accounting, Organizations and Society, 35: 360- 376.

Chandler R. & Edwards, J.R. (1994). Recurring issues in auditing. Professional debate 1875-1900. New York and London: Garland.

Gottschalk. P. (2010). White-Collar Crime: Detection, Prevention and Strategy in Business Enterprises. London: Universal-Publishers.

Parker, A. (2005). The man who put auditing first. Financial Times, 1 December, 12.

Prashad, V. (2002). Fat cats and running dogs: The Enron stage of capitalism. London: Zed Books.

Squires, S. E., Smith, C. J., McDougal, L., & Yeack, W. R. (2003). Inside Arthur Andersen: Shifting values, unexpected consequences. Upper Saddle River: FT Prentice-Hall.

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