ACCOUNTING: After McKesson's

There are some 17,000 Certified Public Accountants in the U. S. To win the coveted initials C.P.A. they had to pass rigorous examinations in accounting. Beyond that, their functions are virtually unregulated by law. Their methods of auditing and analyzing a corporation's balance sheet are their own, the developments of over 400 years of practice. The U. S. public first realized that these methods were not always perfect when the McKesson & Robbins scandal broke last December. How was it possible, the average investor asked, for $18,000,000 in fictitious inventories to deceive seasoned accountants?

SEC set out to answer the point...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!