Making Sure Enron Does Not Happen Again: The Sarbanes-Oxley Act of 2002

Making Sure Enron Does Not Happen Again: The Sarbanes-Oxley Act of 2002 Research Paper example
Masters
Research Paper
Finance & Accounting
Pages 14 (3514 words)
Download 0
Making Sure Enron Does Not Happen Again: The Sarbanes-Oxley Act of 2002 [ YOUR NAME HERE] [YOUR INSITUTION HERE] Making Sure Enron Does Not Happen Again: The Sarbanes-Oxley Act of 2002 In the fall of 2001, corporate giant Enron collapsed. The corporation, which had started making a name for itself in the 1980s by trading in gas futures, was imploding from the inside out…

Introduction

The collapse of the corporate giant brought about a startling reality to the world of business: the corporate giant (and their auditors) had lied. As a direct result of the collapse of Enron and the subsequent meltdown of its auditing firm Arthur Andersen, the Sarbanes-Oxley Act was proposed. It quickly became apparent to all as soon as the scandal became public that both it and the cause behind it could have been avoided. To try to prevent other corporate scandals and collapses from happening, President George W. Bush signed into law the Sarbanes-Oxley Act, named for its sponsors, which would establish measures for corporate oversight and promise stiff punishments for those that even attempted, knowingly or unknowingly, to engage in corporate fraud (Bumiller, 2002). Promising to hold the top echelon of corporate executives accountable, and overhauling auditing and recording practices, the Sarbanes-Oxley Act was declared to be the most far-reaching reform of the United States of America since the time of Franklin Delano Roosevelt (Bumiller, 2002). ...
Download paper
Not exactly what you need?

Related papers

Adoption of the Sarbanes-Oxley Act of 2002 as an Important Piece of Legistion
The SOX was the state’s response to the corporate scandals of the early 2000s, namely Enron and WorldCom. Congress sought to restore public confidence in the financial reporting system through the enactment of SOX. Section 404, in particular, treats on the requisites of the internal control system that companies must abide by. This section requires the filing of an internal control report where…
Adoption of Sarbanes-Oxley Act of 2002 as an Important Piece of Legislation
In the last section the report evaluates the costs and benefits of the changes ushered in by the Sarbanes-Oxley act of 2002. The Sarbanes-Oxley Act of 2002 was drafted by the senator Paul Sarbanes and representative Michael Oxley (SOX-online.com, 2006: Online). The primary objective of the Sarbanes-Oxley Act was to protect and safeguard the interests of the investors by assuring transparency,…
Sarbanes-Oxley and Enron
The accounting profession is self-regulated and its practitioners are supposed to follow the generally accepted accounting principles (GAAP). The GAAP framework was created in 1973 by the Financial Accounting Standard Board (FASB). In order for accounting to function properly the practice requires compliance of high ethical standards. Back at the beginning of the 21st century there was an…
Research and Discuss the Sarbanes-Oxley Act of 2002
Key Components and Primary Objectives of the Act: The basic matters identified and revised in the act included the creation of regulatory board to oversee the activities of the public accounting audit firms, revised standards for auditor’s independence and audit committee, requirement of certification of the SEC’s reports by the executives of the public companies, restricts the rules to…
The Costs, Benefits and Unintended Consequences of the Sarbanes-Oxley Act 2002
The Sarbanes-Oxley Act, which was enacted by the congress on 30th July 2002, benefited the corporate sector but not without posing certain challenges to public companies that was required to implement it. The Sarbanes-Oxley Act aimed at restoring the investors’ confidence, which had been extinguished by the numerous frauds that had affected or even led to collapse of different companies. This…
Sarbanes Oxley Act.
In the US, the Sarbanes Oxley Act is a federal law that was established to enhance standards for all public accounting firms, management firms and public company boards. The Sarbanes Oxley Act got its name from its two main sponsors and architects, namely, Michael Oxley who was a US Representative and Paul Sarbanes who was a US Senator (Kohn, Kohn & Colapinto 12). The Sarbanes Oxley Act requires…
Sarbanes-Oxley Act
Sarbanes-Oxley Act The Sarbanes-Oxley Act is deemed to be quite effective in protecting the investors and enhancing the factor of accurateness and reliability in various corporate financial activities. It has further been noted that the act mainly aims at enhancing the above mentioned aspects in a constant basis with the implementation of strict laws and rules for audit committees of public…