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1. Introduction
In many respects, the recent political, economic and business scene internationally has been tumultuous. A host of issues of significant concern to the wider community have arisen. As a journal committed to the contextualised examination of accounting, auditing and accountability issues, AAAJ has supported and published research, debates and dialogues reflecting this multifaceted, complex and dynamic world.
2. A crisis in financial reporting
The various corporate collapses of 2002 in the USA, Europe and Australasia following the Enron debacle (amongst others) have had a dramatic effect on the legitimacy of accounting and its profession. Arthur Andersen has disappeared, leaving the "Big Four" survivors. Various governments have responded to the legitimacy crisis of the accounting profession, financial reporting and auditing via: creating the accounting oversight boards; increasing public oversight of standard setting; changes to auditor-auditees relationship; changes to corporate governance structures; and changes to corporate regulation. Many issues have been raised during the period including unethical corporate behaviour; limitations of governing corporate behaviour though black letter rules; internationalisation of accounting standards; etc.
These collapses are huge and impact on millions of individuals via superannuation and investment fund losses. For instance, WorldCom, which sought bankruptcy protection in July 2002, after disclosing that it had improperly accounted for $US3.8 billion ($A7.1 billion) in expenses, said that it had uncovered $US3.3 billion ($A6.2 billion) in additional accounting irregularities stretching back to 1999. WorldCom also said that, when the earnings were restated, it would most likely take a write-off of as much as $US50.6 billion related to the reduced value of past acquisitions (Sydney Morning Herald, 2002). These are very big accounting numbers and underline the current lack of confidence in accounting and auditing being experienced. Accounting does count. In the USA, recent uncommon power has combined with uncommon greed to create immense deceptions and losses in the corporate sector and has impacted on tens of millions of people by superannuation investments, insurance premiums, taxpayer bail-outs and the higher costs of corporate accountability.
At a time when accrual accounting practices in the private sector are coming under strict review (for example, Enron, WorldCom and HIH, Harris Scarfe, One-Tel, and so on), many others are indicating that "alternative accounts" are required. Readers of AAAJ would know about alternative roles...