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The World According To GAAP #301925

CBS Evening News for Tuesday, Feb 19, 1985
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(Studio) Report introduced
REPORTER: Dan Rather

(DC) Govt. investigation into accounting firms' possible favoring of wealthy clients at public's expense examined; generally accepted accounting principles (GAAP) noted traditional guidelines for auditors. [SEC spokesperson A. Clarence SAMPSON - fears structure is being manipulated.] History of audit rule, beginning with Great Depression, explained; historical films shown. Failure of United American Bank and Continental of Illinois following Ernst and Whinney accountants' approval of their financial status cited as exs. [Representative John DINGELL - feels both exs. illustrate need for Congress investigation; explains.] Opening of Dingell's Congress inquiry tomorrow noted; scenes from "A Christmas Carol" shown. Econs. involved in accounting industry discussed; leading firms listed on screen. [CEO, Arthur Andersen spokesperson Duane KULLBERG - considers accounting an art, not a science.] Different findings of Arthur Andersen and Securities and Exchange Commission last year after auditing Financial Corporation of America outlined on screen. [Prof. Abe BRILOFF - equates financial stmts. with bikinis; accuses major accounting firms of lowering standards; explains.] [DINGELL - blames Securities and Exchange Commission for allowing auditors too much self-policing.] [Columbia business school spokesperson Sandy BURTON, Price Water house spokesperson Joseph CONNOR - comment on self-regulation.] [BRILOFF - thinks accountants should be whistle-blowers on behalf of public.]
REPORTER: Bob Schieffer

Reporter(s):
Rather, Dan;
Schieffer, Bob
Duration:
00:04:20

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