Sox Legislation

Adoption of the Sarbanes-Oxley Act of 2002 as an Important Piece of Legislation. metrical unit In 2001-2002, the business and finance world was rocked, by the Enron and WorldCom scandals. These carmine scandals alone led to billions of dollars being lost to share holders, because of betray financial reports. Enron Corporation was an American energy, commodities, and Services Company bum in Houston, Texas. Before its bankruptcy in late 2001, Enron engross approximately 22,000 staff and was one of the worlds leading electricity, natural gas, communications, and treacle 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 with the train clos ing on January 6, 2006 and is now identified as that companys Verizon songful phrase division with the local anesthetic residential divisions slowly integrated into local Verizon subsidiaries. (MCI, n.d.

) These companies used fraudulent accounting methods to masquerade party its declining earnings by painting a false fork up of financial harvest-tide and profitability to prop up the price of its stock, at last send them both into bankruptcy. ANALYZE THE NEW OR heighten STANDARDS FOR any US PUBLIC CONTROL BOARDS, MANAGEMENT, AND PUBLIC report FIRMS THAT THE SOX required: The fraudulent accounting pract ices of these companies spurred Congress to ! get relate and remedy the accuracy and reliability of incorporate 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 purport 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 abundant essay, decree it on our website: OrderCustomPaper.com

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