Many of the issues we face with the current economy are blamed on the unethical behavior in the accounting industry. Two of the most famous companies that were eventually caught and prosecuted for unethical accounting behaviors were WorldCom and Enron. The falsification of financial statements and fraudulent activity in the stock market causes thousands of public investors to lose money. During these scandals, some of the people inside the companies were earning millions of dollars at the expense
Words: 434 - Pages: 2
have some of the highest standards for ethical and moral conduct in business. In recent years there have been many high profile business failures caused by the unethical behavior or accountants and accounting firms. Since some major companies, like Enron were involved in serious financial scandals, there has been a push to increase regulation and oversight over financial reporting. At one time accounting professionals were
Words: 3480 - Pages: 14
The law was overwhelmingly passed by both houses of Congress in response to the widespread public and government outrage against corporate abuses. Fraudulent accounting practices and misleading financial reports issued by such corporate giants as Enron, WorldCom and Arthur Anderson caused millions of dollars in losses to investors and an irreparable damage to the public trust. To ensure the certifications were taken seriously, the act also created criminal penalties for noncompliance. The act states
Words: 923 - Pages: 4
The Sarbanes-Oxley Act, also known as SOX, was legislated in 2002. This legislation was enacted mainly to protect shareholders and the general public from accounting malpractices and frauds in the business houses. The Sarbanes-Oxley Act came into force mainly due to financial scandels committed. After its enforcement, the accounting syster and financial statements exposed by the companies made progress. The Sarbanes-Oxley Act raises the standards of corporate transparency and accountability. The
Words: 279 - Pages: 2
Patrick Chamberlain Dr. Wokukwu Intermediate Accounting October 13, 2011 Corporate Responsibility of Sarbanes Oxley Act of 2002 To first understand the corporate responsibilities of the Sarbanes Oxley Act of 2002, otherwise referred to as SOX; you first need to understand that the Act was created for. The SOX came into effect in July 2002 and it was introduced for major changes to the regulation of corporate governance and financial practice. The act was also known as the ‘Public
Words: 4874 - Pages: 20
------------------------------------------------- ------------------------------------------------- California University of Management and Sciences ------------------------------------------------- Advanced Strategic Management Enron By Anna Medvedeva The movie Enron which was based on the Enron Corporation in Houston, Texas is mainly about the company which followed institutionalized, systematic and creative planned accounting fraud for almost a decade. This resulted in Bankruptcy of the corporation in 2001
Words: 607 - Pages: 3
Oxley Act, Dodd Frank Act and JOBS Act exists for a reason. Although politic is a very complicated topic and has some sort of influence in establishing a new federal law, SOX, Dodd Frank Act and JOBS Act are reasonably justifiable. After WorldCom and Enron incidents, Sarbanes Oxley Act was established to regulate auditors and public company. After Late 2000’s mortgage crisis and others, Dodd-Frank and JOBS Act was established to regulate financial industry under federal government. Federal regulation
Words: 644 - Pages: 3
The Fall of Enron is a perfect example of management failure. Enron started off as a merger between Houston Natural Gas and Inter-North. A few years after the merger, Enron started changing the strategy and structure of the organization. Enron went from a raw materials management company to a company selling energy commodities. Enron proceeded to change from an energy company to a risk management firm that traded everything from commodities to derivatives. Enron failed for many reasons, ranging
Words: 971 - Pages: 4
Legality and Ethicality of Financial Reporting Jacqueline Carr ETH/376 December 17, 2012 Samuel Hinton Legality and Ethicality of Financial Reporting Excello Telecommunication is a very successful business; however, just recently they have been experiencing some heavy competition in the businesses industry. Terry Reed the businesses CFO has realized the business is not going to meet the years estimated earnings, which can cause problems meeting financial responsibility to the stakeholders
Words: 1371 - Pages: 6
Keyera Jones November 05, 2012 Richard A. Alexander, Esq. LAW/421 The Sox Act originated in July 2002 and made known extensive changes to the managing of corporate and governance and monetary usual procedure. The name was after Senator Paul Sox and Representative Michael Oxley his primary architects, and there was a number of non-negotiable due dates for compliance. Sox Act may share affect ethical decision-making in today’s business. Researching the Sox Act, a code of ethics makes up standards“rationally
Words: 389 - Pages: 2
