It's Worse Than You Think. (Editorial)

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HERE IS ONE OF THE MOST REMARKABLE aspects of the still-unfolding financial scandals swirling around WorldCom, Xerox, Global Crossing, Enron, Arthur Andersen, Tyco and a growing number of other companies: The fraud occurred in the most heavily regulated and monitored area of corporate activity.

If an epidemic of corporate malfeasance could occur in the financial arena, how serious is the more general problem of corporate crime?

Consider the checks and balances in place that should have stemmed the wave of corporate wrongdoing which has reportedly angered even USA, Inc. CEO George Bush:

* Disclosure requirements for corporate financial performance are extensive, and by far the most detailed for any element of corporate activity.

* There is a distinct industry -- made up of accounting firms -- whose function is to review the financial …