Lex Luz

Financials: Is Fiscal Prudence Too Much to Ask For?

"Secrecy and creative accounting" should be called what they really are: fraud. Unfortunately no one seems to regard fraud as a negative any longer, let alone a crime. GAAP were at one time used to guide organizations toward transparency in the spirit of compliance with law, whereas now they are used to guide organizations toward secrecy and the compliance with the letter of the law while totally violating its spirit.

Today the core curriculum at the nation's business and law schools can fairly be summarized as "lie, cheat, and steal, and when you are caught, claim ignorance and feign indignance." Until we stop grinding ethics out of people, and start leading by example with ethical behavior and standards that reinforce it (and punish its violators), we are never going to recover lost trust.