The various financial scandals that have broken out throughout the years revealed investor trust is slowly diminishing. This mistrust has resulted in the questioning of the accounting profession, and its contribution to social welfare. An ethical corporate environment greatly influences moral judgment and encourages everyone to act with honesty and integrity, therefore it is worth examining a firm’s actions in response to fraudulent activities.

In your own words. Write a short answer to why this is true and why you agree with the statement.


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