Accounting: Profits Without Honor

Accounting is not normally thought of as an exciting subject. But on Wall Street these days, it is the focus of intense interest. The notion has taken root that corporate profit reports are not always what they seem, and investors' suspicions have been nourished by the accounting profession itself, a staid club that is usually a model of gray-flannel decorum.

Stocks of franchising companies, for example, have been among the Street's latest go-go favorites. But last fall Leonard Savoie, executive vice president of the American Institute of Certified Public Accountants, warned CPAs...

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!