Sox Legislation

Adoption of the Sarbanes-Oxley Act of 2002 as an Important Piece of Legislation. understructure In 2001-2002, the business and finance world was rocked, by the Enron and WorldCom scandals. These of import scandals alone led to billions of dollars being lost to share holders, because of misinform financial reports. Enron Corporation was an American energy, commodities, and Services Company infrastructure in Houston, Texas. Before its bankruptcy in late 2001, Enron prosecute approximately 22,000 staff and was one of the worlds leading electricity, natural gas, communications, and swill and paper companies, with claimed revenues of nearly $101 billion in 2000. (Enron, n.d., para. 1) WorldCom (aka MCI, Inc.) is an American telecommunications subsidiary that is headquartered in Ashburn, Virginia. The corporation was formed as a result of the merger of WorldCom and MCI Communications. The corporation was purchased by Verizon Communications wit h the record closing on January 6, 2006 and is now identified as that companys Verizon canorous phrase division with the local anesthetic residential divisions soft integrated into local Verizon subsidiaries. (MCI, n.d.

) These companies used fraudulent accounting methods to act its declining earnings by painting a false line drawing of financial harvest-tide and profitability to prop up the price of its stock, finally send them both into bankruptcy. ANALYZE THE NEW OR intensify STANDARDS FOR any US PUBLIC CONTROL BOARDS, MANAGEMENT, AND PUBLIC accounting FIRMS THAT THE SOX required: The fraudulent accounting practices of these companies spur! red Congress to get abstruse and remedy the accuracy and reliability of bodily disclosures. Two representatives of Congress, Senator capital of Minnesota Sarbanes and congressman Michael Oxley, drafted the Sarbanes-Oxley Act of 2002. This act was put in short letter to nourish the investors by improving the accuracy and reliability of corporate disclosures make pursuant to the securities laws, and for other...If you want to get a encompassing essay, decree it on our website: OrderCustomPaper.com

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