• Research Paper on:
    Enron and the 2002 Sarbanes Oxley Act

    Number of Pages: 4

     

    Summary of the research paper:

    In four pages this paper discusses the collapse of Enron and the abuses the 2002 Sarbanes Oxley Act sought to target as a result. Three sources are cited in the bibliography.

    Name of Research Paper File: D0_MTensaox.rtf

    Buy This Research Paper »

     

    Unformatted Sample Text from the Research Paper:
    were already on the books to prevent situations such as Enron from happening, they didnt deter the companys downfall - in fact, Enrons senior management had showed a remarkable disregard  for any type of law. This is why, close to one year later, Congress passed the Sarbanes-Oxley Act of 2002, an act to address corporate reform. While the Act never  targeted Enron specifically, it is widely understood that passage of the act was geared to send a message to Enron corporate executives - namely, cheaters never prosper. But whether the  act will deter another Enron still remains yet to be seen. But the Act does more than send a message - Democrat  Senator Paul Sarbanes of Maryland, who co-drafted the Act, wrote provisions creating new regulatory initiatives directed toward stopping fraud from occurring at all, rather than dealing with it after it  has occurred (Leahy, 2003). Also included in this Act is criminal provisions that are aimed at preserving evidence of fraud (Leahy, 2003). These two issues, among others, helped assist Enrons  downfall. For one thing, Enron had been perpetrating fraud for years through its dishonest accounting methods. Although much of its accounting and  audit functions were in accordance with Generally Accepted Accounting Principles (GAAP), hiding debt in dummy corporations, as well as creating extra cash with clever accounting, was a definite violation of  accounting regulations. Arthur Andersen, for its own reasons, kept silent about what was going on, despite the fact it was illegal,  and despite the fact that, as Enrons auditor, Andersen was duty-bound to point out the error of Enrons ways to its senior management; and if its senior management did nothing, 

    Back to Research Paper Results