Sarbanes-Oxley Act Brandie Cortinas ENGL 145(D-21) 5-12-14 Ms. Vivian Abstract The act enacted in response to financial problems to protect the public from accounting errors and fraud. The act does not specify how a business should store their records; rather‚ it defines which records are to be stored and for how long they’re going to be stored. The act affects the financial corporations and the IT department. All business records must be saved for more than five
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the financial system. The July 2002 enactment of the Sarbanes Oxley Act‚ co-authored by U.S. Sen. Paul Sarbanes of Maryland and U.S. Rep. Michael Oxley of Ohio‚ followed a series of large public company failures that included Enron‚ Tyco and WorldCom. Sarbanes-Oxley addressed investor confidence and fraud through reform of the public company reporting standards. However‚ much damage in the market occurred with the collapse of several major companies between 2002 and 2004. (smallbusiness.chron
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Company would have to engage in accounting practices for which there was no legitimate justification‚ and Ebbers replied to Sullivan‚ in words or in substance‚ “We have to hit our numbers.” Scott Sullivan’s position of Chief Financial Officer at WorldCom‚ in conjunction with weak controls‚ presented opportunities for him to commit fraudulent activities. Sullivan’s high position allowed him to dictate his power over his subordinates and often directed them to make large entries to the general ledgers
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opportunity to cut costs and increase revenue brings a company that much closer to overpowering its industry rival. "There are good reasons to be skeptical about whether easing the way money flits around the world has brought more good than harm" (Moberg 18). While the globalization of the Information Technology industry greatly depends upon a firm’s competitive position in a particular country being significantly impacted by its position in other countries‚ it can be readily understood that global
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Internal Audit and the Relationship with Senior Management Summary: The case study “Internal Audit Reporting Relationships: Serving Two Masters” was a part of a series of research projects being developed by the Institute of Internal Auditors to determine the various relationships‚ specifically reporting relationships between the internal auditor and those charged with governance. To obtain research about the various types of reporting relationships‚ independence‚ conflicts that arise from
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Article Review The Sarbanes-Oxley Act of 2002 ARTICLE SYNOPSIS In response to the Enron and WorldCom scandals‚ the Sarbanes-Oxley Act was enacted in July 30‚ 2002. This provides a comprehensive power that modifies the compliance of how companies would need to report their financials to the Securities and Exchange Commission (SEC). The law’s purpose is to solve precise mechanism failures in accounting approaches and requires greater levels of fiduciary responsibilities especially for those
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IKEA Christopher A. Bartlett and Ashish Nanda With a 1988 too much by attempting major new market entries simultaneously in two European countries (United Kingdom and Italy)‚ the United States‚ and several Eastern bloc countries. Finally‚ there was widespread concern about the future of the company without its founder‚ strategic architect‚ and cultural guru‚ Ingvar Kamprad. IKEA BACKGROUND AND HISTORY In 1989‚ furniture retailing worldwide was a fragmented industry in which small
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References: CNET (2002) Drawing lessons from WorldCom [WWW] CNET. Available from: http://news.cnet.com/Drawing-lessons-from-WorldCom/2009-1022_3-943517.html [Accessed 30/11/2010] BBC (2002) Enron scandal at-a-glance [WWW] CNET. Available from: http://news.bbc.co.uk/1/hi/business/1780075.stm [Accessed 02/12/2010] SOXLAW (2002) The Sarbanes-Oxley
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legitimate power‚ reward power‚ coercive power‚ expert power‚ referent power. Case Study Bernie Ebbers built WorldCom Inc into one of the largest telecommunication firms. Yet he and CFO Scott Sullivan have become better known for creating a massive corporate accouting fraud that led to the largest bankruptcy in US history. Two investigative reports and subsequent court cases concluded that WorldCom executoves were responsible for billions in fraudulent or unsupported accouting entries. How did this mammoth
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would risk arbitragers take in this deal? How would their positions change if the board appears to favour Quest offer? 4. Consider the Worldcom-MCI merger and the Qwest-US West merger. Trying to avoid hindsight bias‚ should the board of MCI and US West have accepted these offers? What is the obligation to shareholders? Was that obligation fulfilled? What about WorldCom and Qwest? Did their shareholders benefit? 5. Which offer should MCI accept? Why? 6. What approach should Verizon take to win takeover
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