Impact of Unethical Behavior Shavonne Ware February 12, 2012 Acc/291 Mrs. Adkins The Sarbanes-Oxley Act of 2002, also known as SOA, was passed due to the accounting scandals at Enron, WorldCom, Global Crossing, Tyco and Arthur Andersen, that resulted in billions of dollars in corporate and investor losses. These huge losses negatively impacted the financial markets and general investor trust. The Sarbanes-Oxley Act mandates a wide-sweeping accounting framework for all public companies doing
Words: 423 - Pages: 2
inside trading. “Sarbanes-Oxley was precipitated by a slew of corporate scandals, including those at Enron (otc: ENRNQ - news - people ), Arthur Andersen, Tyco (nyse: TYC - news - people ), Global Crossing (otc: GBLXQ - news - people ) and WorldCom (otc: WCOEQ - news - people ). But it was meant to address systemic flaws in the way corporations have been reporting their numbers for decades.” (www.forbes.com) The effect of the Sarbanes-Oxley Act that President Bush signed into law July
Words: 404 - Pages: 2
earnings became public, sending shock waves through the financial markets. Arthur Anderson Arthur Anderson corrupted and got corrupted by: 1- Baptist Foundation of Arizona 2- Sunbeam 3- Waste Management 4- Enron. 5- and Telecoms and WorldCom Arthur Anderson Enron was forced to restate five years’ worth of financial statements that Anderson had si nged off. Shredding Enron statements Anderson CEO had viewed the $1 million a w eek in audit fees from Enron paid to Anders on along
Words: 343 - Pages: 2
Arthur Andersen:- Arthur Andersen founded the company in 1913 but after his death Leonard Spacek took the leadership in 1947. Under his leadership of 26 years, Authur Andersen & Co. becomes a genuine international company. They had opened their offices in more than 25 countries with a staff of more than 12000. In 1970’s they started providing consulting services and by the 1988 they become the largest consulting company of the world. However in the mid 1980’s many cases were filed against the
Words: 388 - Pages: 2
Congress presented the act to the president on July 26, 2002, after passage in the Senate by a 99-0 vote and in the House by a 423-3 margin” (The sarbanes-oxley act). A new federal law was passed in reaction to corporate scandals such as the Enron, WorldCom, Tyco cases. The Sarbanes-Oxley Act puts extreme pressure on companies accounting practices and annual reports. Simply put, the act was created to protect investors from corporate corruption, and accounting misconduct. This act also created a new
Words: 1587 - Pages: 7
have the control to provide negative or positive feedback. There have been many examples where stakeholder’s wealth and interests were extremely affected by fraudulent or at least unethical management decisions. These examples include ENRON, WorldCom, Tyco and many more. Of course, business ethics is affected by inside trading and bribes. It turns out that the extent to which professional managers’ value business ethics can have a substantial impact on shareholders, stakeholders and society
Words: 1688 - Pages: 7
Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; b. enacted on July 30, 2002 in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, and WorldCom. c. The Act establishes a new quasi-public agency, the Public Company Accounting Oversight Board, or PCAOB, which is charged with overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies
Words: 425 - Pages: 2
the America economy it’s important that they conduct their business in a legal and ethical manner. When they do not follow legal guidelines or find loop holes around them the damage trickles down the ladder. When companies like Enron, Tyco and Worldcom were discovered falsifying finance information and doing millions of dollars of damage, in 2002 Sarbanes Oxley was put into place to thwart corporate giants from reporting incorrect by reporting all numbers in a uniform fashion with an approval of
Words: 438 - Pages: 2
The PCAOB also oversees the audits of brokers and dealers, including compliance reports filed in connection with federal securities laws which promotes investor protection. Background of PCAOB Congress created the PCAOB in the wake of Enron, WorldCom, Tyco, and a series of other financial reporting scandals that rocked the securities markets and shook investor confidence. The birth of the Board signaled the end of voluntary self-regulation of the auditing profession and the beginning of compulsory
Words: 501 - Pages: 3
Sarbanes-Oxley Act, or SOX as it is commonly abbreviated to, was a reaction to a major corporate and accounting scandal; the most recognizable of those companies included in the scandal were Enron, Tyco International, Adelphia Peregrine Systems, and WorldCom. In Enron’s example, they used loopholes to hide billions of dollars in debt that the company had incurred through failed deals and projects. The falsified financial documents convinced investors that nothing was astray and even increased the company’s
Words: 424 - Pages: 2
