state of the overall financial control system. (Wagmer & Dittmar, 2006) “The apparent motivation for the Sarbanes-Oxley Act was to combat the financial statement fraud problem that continues to plague the United States, as embodied by Enron, WorldCom, Global Crossing, and too many others. Simply stated, Sarbanes-Oxley takes direct aim at the perceived drivers of fraud by attempting to strengthen board and audit committee oversight, increase auditor vigilance and independence, strengthen internal
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The Sarbanes-Oxley Act of 2002 and the PCAOB Liberty University Abstract As a result of massive accounting scandals in the United States between 2001 and 2002 involving notorious companies, such as Enron, Worldcom, Tyco, and various other recognized entities, President George W. Bush signed into legislation during 2002 the Sarbanes-Oxley Act of 2002. This historic piece of legislation has had a profound effect on the accounting profession. As a result of the act, the PCAOB was created. Since
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RUNNING HEAD: EXCELLO TELECOMMUNICATIONS CASE Excello Telecommunications Case Kevin C ETH/376 February 10, 2014 Excello Telecommunications Case The year is quickly ending for Excello Telecommunications, and they are trying to maximize earnings for the company. With increased competition from foreign companies, Excello meeting its financial estimates are looking bleak. Failure to meet earnings expectations can reduce the availability of bonuses, stock options and could
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THE SARBANES OXLEY ACT of 2002 The Sarbanes Oxley Act of 2002 was signed into law after a series of corporate financial scandals affected companies such as Enron, WorldCom, and Arthur Anderson. It provides a solid set of government rules that will discourage and punish corporate and accounting fraud and corruption by imposing severe penalties for wrongdoers, while protecting the interest of workers and shareholders. Acknowledged as the most significant change to securities laws since
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Legal Advice Question #1 - Summarize the actions that lead to the lawsuit. In the suit Board of Trustees of Community College District No. 508 v. Coopers & Lybrand, the Board filed suit due to Cooper’s failure to report discrepancies and inappropriate investments by the Treasurer and Chief Financial Officer Phillip R. Luhmann. According to Kilbride (2003, p.1), “in 1988, 1990, and 1992, the Board Adopted Resolutions authorizing its treasurer to invest City Colleges’ funds only
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A lot of of the matters we go through with the present economy are responsible for the unethical conduct in the accounting business. Two of the well-known corporations that were finally jammed and arraigned for unethical conducts were Enron and WorldCom. The misrepresentation of business statements and deceitful commotion in the stock market affects thousands of stakeholders to miss money. Throughout this humiliation, a hand full of people in this company was making millions of dollars from
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accounting is necessary. Another reason all business students should have some background in accounting is because in recent years, people in the business world have been held more accountable for their financial practices. Since the Enron and WorldCom crisis when independent auditor Arthur Anderson failed to report illegal accounting practices, the SEC has been monitoring public corporations more closely. Thus, companies require some basic knowledge of accounting to avoid any future misstatements
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Jameelah Smith-Randall Business 499 Prof. Rufus Robinson March 4, 2014 Week 8 Essay: Corporate Governance and what it means in today’s world environment. Corporate governance refers to the system by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants among different participants in the corporation and specifies the rules and procedures for making decisions in corporate affairs. Corporate
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The Sarbanes-Oxley Act (SOX) became law in 2002 after the discovery of significant fraudulent activity on the part of officers of several corporations (Enron, WorldCom, Adelphia, etc.). The goal of the law was to stem the tide of continuing fraudulent behavior, tighten governance and make it more costly for individuals if they were involved in frauds. Unfortunately, the goals were not achieved, and the spate of significant frauds continued with frauds involving major banks and corporations (HealthSouth
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Mrs. Fields’ Cookie Company had found that quality is a wonderful stimulant for improving operations. The good quality and services would increase the Mrs. Fields’ Cookie Company’s reputation. Mrs. Fields’ Cookie Company succeeded from their good quality products. It gave a stronger influence to the customers. Moreover, As Mrs. Fields’ Cookie Company pursuing the tender loving care, Mrs. Fields would consider product liability for their cookies. Product liability is very important when making products
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