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CEDAR RAPIDS, Iowa — Vice President Dick Cheney conceded Monday that corporate scandals have shaken confidence in the economy but said reforms will “bring out the best of the free enterprise system.” 

“When there are reports of corporate fraud the American people can be certain that the government will fully investigate and prosecute any wrongdoers,” Cheney said. “That system will be stronger and better.” 

During a fund-raising appearance on behalf of Rep. Jim Leach, R-Iowa, Cheney said the reform measure Bush is signing Tuesday will “protect investors, bring more accountability to corporations and toughen controls of the accounting industry.” 

Cheney did not refer to questions that have been raised about his tenure as CEO of Halliburton Co. The Securities and Exchange Commission has launched an investigation into accounting issues at Halliburton during that period, and investor lawsuits have accused Halliburton of accounting gimmicks similar to those used by the failed energy trader Enron Corp. 

Scandals at Enron, WorldCom and others have been blamed for shaking investor confidence and causing the plunge in the stock market. Congress rushed through a measure toughening penalties for corporate wrongdoing in an effort to restore investor confidence. 

Cheney conceded the scandals have had an effect. 

“Confidence in the free enterprise system has been tested recently,” he said. “The president’s reforms will bring out the best of the free enterprise system.” 

Cheney conceded the nation has suffered through an economic recession, but he said things are turning around. 

“On the economy, there is a great deal of work yet to do,” Cheney said. “We are proceeding from a condition of considerable strength.” 

He said there are clear signs of recovery in all segments of the economy. 

“Clearly we believe we’re on the path to what we believe will be a strong and prolonged recovery,” Cheney said.