Hollywood, Calif. (Aug. 12, 2002) -- Major changes in financial accounting rules are needed to restore public confidence in the capital markets, Enron whistleblower Sherron Watkins told a group of Certified Fraud Examiners here.
"The financial accounting rules have become too rule-based and not principle-based," Watkins said during a luncheon address, where she spoke candidly about the events at Enron. "Companies feel like they are justified in reporting results by finding a set of accounting rules they think applies to their business and applying those rules even if there's no resemblance to the financial condition of the company or the operations of the company. The idea that a set of financial statements is supposed to fairly represent the condition of the company appears to have gone out the window."
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