The impact of accounting scandals of 2001 and 2002 was especially important because

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The accounting scandals of 2001 and 2002 had a significant impact on investor uncertainty about corporate fundamentals, as well as highlighting the conflict of interest that arises when major accounting firms both consult and audit their clients. This dual role created an incentive for accounting firms to prioritize pleasing their clients over accurately reporting their financial statements, leading to unethical behavior and financial misstatements. This ultimately eroded investor trust in the accounting profession and the financial markets.

The Impact of Accounting Scandals of 2001 and 2002 Was