In the wake of Enron, it became increasingly clear that financial statements purporting to show public company financial results could be severely – sometimes fraudulently - flawed despite the certification of those statements by supposedly independent auditors. The drive was instigated by the sudden announcement by Enron, the country’s seventh largest company, that it was restating $1 billion in earnings because of accounting issues and its subsequent bankruptcy six weeks later. ![]() The passage of the Sarbanes-Oxley Act (SOX) was the culmination of a race to restore investor confidence. “We often think of money as the currency of a free market system, but in truth the system rises and falls on the confidence of its investors.” ( 2) I mean they were really playing absolutely outrageous games, and they put out these financial statements which had no connection with reality.“ ( 1) It sounds like a pretty simple thing to say but we weren’t getting it out of a lot of significant companies. “All we want is honest record-keeping, that’s what we are trying to get. Race to Restore Confidence: Passing the Sarbanes-Oxley Act The March Forward: Access to China and Other Challenges.Expanding the Mandate: The Dodd-Frank Wall Street Reform and JOBS Acts.An Existential Threat: Free Enterprise Fund vs.A Political Hotbed: Crafting the Internal Control Over Financial Reporting Standard.From the Ground Up: Establishing the PCAOB.A Rocky Start: Naming the First PCAOB Chairman. ![]() Race to Restore Confidence: Passing the Sarbanes-Oxley Act.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |