Sarbanes-Oxley Act Financial Management Miriacle K. Black Belhaven University Abstract In 2002 an Act by the name of Sarbanes-Oxley was implemented following the bankruptcy of Enron, an American energy, commodities, and Service Company that was based out of Houston, Texas. This paper will discuss and describe the Sarbanes-Oxley Act; also it will answer such questions as: Why was the Sarbanes-Oxley Act enacted? What was the impact of the Sarbanes-Oxley Act? Also, my opinion of whether or not I
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New Century was related to accounting issues ignores the reality of the global credit crisis. This was a business failure not an accounting issue." The claims in the case are narrower than those made earlier this decade against companies such as Enron Corp. and WorldCom Inc., which collapsed after their accounting frauds unraveled. In those cases, accounting issues were deeply embedded in the companies, while New Century collapsed largely because of losses on
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Business Research Ethics We are going to looking at the Enron Scandal to see how this company’s unethical behavior brought it to an end, to see who were the injured parties; to see how this company’s unethical behavior affected the company and society, and to see if the unethical behavior could have been avoided or resolved? According to the New York Times (2002), in early 2000, Enron, the natural gas pipeline company turned online phenomenon, held a daylong conference in Huston for Wall
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Reading Summary: Enron and Arthur Andersen The article described the rise and fall of the Enron Company during the period of time that managed by several executives. The deregulation of public utility industries gives Enron chance to make profit by trading energy as commodity in the open market. Thus, Enron ranked the seventh largest of the Fortune 500 at the year of 2000. However, for the purpose of rise company shares and control current risk of company, Enron deals agreements with internal
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report for corporate governance; however, companies must disclose, and adapt corporate governance guidelines. The CEO of each organization must acknowledge the acceptance of the guidelines and comply with them (Mintz & Morris, 2011). After the Enron case New York CPA candidates must met ethics requirement criteria (Mintz & Morris, 2011). In this respect it is important for United Thermostatic Controls to separate ownership and control in the organization. The legality of the activities of
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though such unethical practices had been taking place. The public was not aware of what had been happening in their financial and other corporate institution because the cases were well hidden and these dirty games were well played. The case of Enron was an eye opener to the public. The case brought to attention the issue of the regulation of financial institutions. The fraud was put in the new and it was clear now that investment banks were in a position to generate more money in the underwriting
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Legality and Ethicality of Financial Reporting Janet Tran ETH/376 Kathrine Parks University of Phoenix/Axia July 21, 2014 Excello Telecommunications was presented with a dilemma on how the company should report earnings so that they would appear to have met earning estimates for the 2010 financial year. The CFO, Terry Reed, was concerned with how failure to meet earning estimates would affect bonuses, stock options, and the share price of
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Unethical Practices and Behavior in Accounting Name Institution Course Tutor Date Unethical Practices and Behavior in Accounting The Sarbanes-Oxley (SOX) Act of 2002 was passed by the congress to protect investors from fraudulent accounting activities by organizations (Hart, 2009). Investors depend on the information that they receive from accountants to make investment decisions and hence if incorrect information is provided, the investors make inaccurate decisions, which could be costly
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Business Research Paper In this paper I will be going over the business ethics of a company that is known for one of the biggest frauds in corporate America. The company is Enron and I found an article that is titled " The Case Analysis of the Scandal of Enron" and in this article the author talks about the business practices on Enron and the unethical research they used to grow their business and in the end they ruined a lot of good people's lives, and damaged their futures. According to "Dictionary
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Mark Willis BUS 508 – Contemporary Bus November 15, 2013 Determine the most important five skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. As the annual price tag for fraud at American business soars to nearly $1 trillion, the demand for Certified Public Accountants that provide forensic accounting services has increased exponentially-
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