Hihi

Topic: Europeans should push for a reform in corporate governance and accounting practices.

It is obvious that a reform in corporate governance and accounting practices should be introduced by Europeans after the Ahold financial scandal for three following reasons. The first reason is bad corporate governance, to be specific, Ahold overstated its profits by more than 463m. Consequently, it is now under investigation by various authorities, including America’s Securities and Exchange Commission. Next comes the aggressive earnings management, shown by booking the rebate payments as profits before Ahold was actually earned. Last but not least, the accounting irregularities which involved the questionable role of auditors were ignored. That is why the auditors should have controlled the problems more strictly. To sum up, Europeans should fix their corporate governance and accounting practices in order to avoid financial scandals and minimize huge losses.