Sarbanes-Oxley Act 2002 Aracheal Ventress Accounting 561 February 3, 2014 Professor Myrtle Clark Sarbanes-Oxley Act 2002 Corporation scandals, such as Enron, initiated the enactment of the Sarbanes-Oxley Act 2002 also known as SOX. Prior to its existence, the public became aware of Enron’s weak internal control, misleading earnings reports, and conflict of interests between executives and their chief auditor.Misleading information provided in false earnings reports allowed Shareholders
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Ebbers ("Ebbers"), the former Chief Executive Officer of WorldCom, Inc. ("WorldCom"), reported to a federal prison in Oakdale, Louisiana, to begin serving his 25-year jail sentence from his conviction by a jury on nine counts of conspiracy, securities fraud and related crimes related to the bankruptcy of WorldCom in July 2002. Ebbers' appeals from his conviction and 25-year jail sentence were dismissed by the United States Court of Appeals for the Second Circuit on July 28, 2006.1 In its decision upholding
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Assignment 1: Review of accounting ethics 1 Assignment 1: Review of Accounting Ethics By February 1, 2013 ACC 557: Financial Accounting Oleksii Morgun Strayer University at Arlington Campus School of Business Administration (M.S. Accounting Program) Assignment 1: Review of Accounting Ethics 2 Abstract This research writing is to describe the following: 1. Given the corporate ethical breaches
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extremely useful to a financial statement reader. Financial Disclosure has seen an increase in the last ten years due mainly to the implementation of the Sarbanes Oxley Act. The Sarbanes-Oxley Act was passed by Congress in 2002 to deter corporate fraud and unethical behavior. The Sarbanes-Oxley Act also known as
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The story of the Adelphia Scandal begins in 1952 with purchase of a cable network company by John Rigas. By the year 1972, the purchased cable network had evolved into Adelphia Communications Corporation. By the late 1990s, Adelphia had acquired Century Communications and eventually became the sixth largest cable company, servicing over 5 million subscribers. Adelphia was a family owned and operated business. Rigas family members were the majority of Adelphia’s board members and controlled a
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Exchange Commission (SEC) charged HealthSouth Corporation, the nations’ largest provider of outpatient surgery, diagnostic and rehabilitative healthcare services, and its Chief Executive Officer and Chairman Richard M. Scrushy with a massive accounting fraud. Scrushy, along with several of his former colleagues allegedly inflated HealthSouth’s pre-tax earnings. [Knapp] Founded in 1984 in Birmingham, Alabama, with more than 50,000 employees and nearly 2000 facilities across all states, HealthSouth earned
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company's stock. Caught by surprise, CFO Tim couldn't come up with a decent response. Adelphia Communications Corp. founder John Rigas and his son Timothy were sentenced of conspiracy, bank fraud and securities fraud for looting the cable company and cheating its investors.The two were convicted of all 15 securities fraud charges against
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different countries and it has over 630, 000 employees over the world. Even though AIG is such a giant corporation, it has encountered financial problems in the early 2000s. Under financial pressure and a lack of internal control, AIG have committed frauds resulting in several scandals. One of the accounting scandals was disclosed during 2005 which involved a material mis-statement due to false transactions during 2000. This scandal set to prelude leading the downfall of AIG in 2008. In this paper,
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economic confusion and anxiety to target both consumers and businesses. Thieves are sending out phony emails and putting up fake Web sites pretending to be banks, mortgage-service providers or even government agencies like the Federal Bureau of Investigation or the Federal Deposit Insurance Corp. Cell phones and Internet-based phone services have also been used to seek out victims. The object: to drain customer accounts of money or to gain information for identity theft. Most scams are done by e-mail
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Ethics in the Corporate World ACC 557 Financial Accounting January 26, 2014 In today’s society, it seems that most companies are out to chase the almighty dollar and have little to no concern for the repercussions of their actions. In this paper, we will address five aspects of the corporate world and the ethical breaches that have been made in the last few years. The company that we will look at for examples is WorldCom. WorldCom was one of the companies that led to the creation of the Sarbanes-Oxley
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