Sarbanes-Oxley Act The Sarbanes-Oxley is a U.S. federal law that has generated much controversy‚ and involved the response to the financial scandals of some large corporations such as Enron‚ Tyco International‚ WorldCom and Peregrine Systems. These scandals brought down the public confidence in auditing and accounting firms. The law is named after Senator Paul Sarbanes Democratic Party and GOP Congressman Michael G. Oxley. It was passed by large majorities in both Congress and the Senate and covers
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statistics on the internet bubble‚ Frontline http://www.nethistory.info/History%20of%20the%20Internet/dotcom.html Lowenstein‚ R.‚ 2004 The Internet Bubble‚ Jonathan Wallace‚ http://www.spectacle.org/0101/bubble.html Metrick‚ A.‚ 2007 Tran‚ M.‚ 2002. WorldCom accounting scandal. Guardian‚ 9 August.
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2003). CEO’s and CFO’s that partake in falsifying statements also face strict penalties‚ up to ten years for knowing and up to twenty years if willing (Bumgardner‚ 2003). I think this part of the Act was in response to scandals such as Enron and Worldcom. The CEO’s and CFO’s of those corporations that participated in fraud were made examples of‚ but to keep CEO’s from participating in these frauds they made a law to detour them and to keep these type of people from having the legal defense of not
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Microeconomics July 7‚ 2010 JP Morgan/Chase JP Morgan is one of the oldest and financial firms with its leading financial Services. In order to understand how JP Morgan/Chase came to be one of the oldest financial service firms in the world we need to understand the background of the banking institution. The commercial banking started in the revolutionary war and played a major role in the growth of the nation’s economy. One of the first banks was The bank of New York in 1784
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What is the Sarbanes-Oxley Act of 2002 and what is its purpose? The Sarbanes-Oxley Act of 2002 was designed and passed to protect investors of corporations from the possible acts of fraudulent accounting activities by corporations. The SOX Act’s purpose is to commend and force ethical business practices among businesses across all industries. The overall goal was to protect financial records that organizations keep to help further protect against any and all accounting fraud. Major corporations like
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reporting has come to light. More so in a publicly traded organization. An example of such organizations that have fallen into the category of inaccurate reporting of financial records had as a result have collapsed‚ Lehman Brothers‚ Arthur Andersen and Worldcom. The cost effect it has on a company’s public image is far greater that the cost of
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Table of contents: 1. Introduction ---------------------------------------------------------------------------------- -2- 2. The first effect: accountants responsibility increase * Special sections of SOX that increase accountants responsibility by imposing criminal liability------------------------------------------------------------------------------------------ -3- * Accountants independence resulting in a higher responsibility of accountants------- -4- * Fraud decrease
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chronic disease that has stable and unstable times. During unstable times with inflammation in the vascular wall‚ patients develop a myocardial infarction. Myocardial infarction may be a minor event in a lifelong chronic disease‚ it may even be undetected‚ but it may lead to sudden death or severe ‘haemodynamic’ deterioration. A myocardial infarction is the first biggest of coronary artery disease / it may happen‚ repeatedly. The term “myocardial infarction” has psychological and legal implications
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were used by government agencies‚ such as the CIA‚ the FBI and the IRS‚ to uncover and investigate fraud” (Ramaswamy‚ 2005‚ p. 2).With the recent economic downturn the profession of forensic accounting has seen a 200% increase since the Enron and WorldCom accounting scandals (Davis‚ Farrell‚ & Ogilby‚ 2009). In 2009 Davis‚ Farrell and Ogilby
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Parmalat Finanziara‚ the Italian dairy and food giant‚ is fast joining Enron and WorldCom as a household name for corporate scandal. The alleged financial fraud at Parmalat spans more than a decade and involves sums whose estimates have ballooned from EUR 4 billion to more than EUR 8 billion. Founder‚ chairman‚ and chief executive Calisto Tanzi has been ousted from the company and board and is under arrest. Enrico Bondi‚ who replaced Tanzi in December‚ has been given new authority to act as sole
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