Accounting Scandals in the early 2000s

During the early 2000s, the role of hi tommyrot and the auditing profession qualifyingd and several report scandals were uncovered. a.What conditions caused accounting and the audit profession role to change during this prison term?The Enron scandal is one of the biggest from the early 2000s. Everything close to this walloping is huge, including a $50 billion bankruptcy, and employee retirement accounts drained of much than than $1 billion. Enron?s auditor, Arthur Andersen, was indicted on criminal charges in 2002 as a endpoint. Arthur Andersen was assigned to Enron as both internal and orthogonal auditor. period working on internal controls, they had to attest to their feature figures. This resulted in huge doubts being placed upon the accounting profession. Additionally, internet restatements manifold between 1997 and 2000, and Enron reported $600 million in losses. Investors were too losing on market capitalization from audit failures. b.What major changes o ccurred as a result of the accounting scandals at that time?The Sarbanes Oxley act as of 2002 (SOX) was created in response to the large corporate scandals, including Enron. SOX was engineered to set rules for compliance. The rigorous sore rules were put in place ?to protect investors by astir(p) the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for early(a) purposes (SOX, 2002). The close to fundamental reform of SOX was the Public Company write up Oversight Board (PCAOB), which was created to oversee auditors of public companies in guild to protect the interests of U.S. investors. Arthur Anderson went out of business following their decline and indictment, and this was the deterrent major change that occurred as a result of the Enron scandal. References:Byrnes, N., et. Al. (January 28, 2002). story in Crisis: reform is urgent. Retrieved August 22, 2007, from BusinessWeek website: http://www.businessweek.com/magazine/ message/02_04/b3767712.htmSarbanes-Oxley to! ur of 2002. Retrieved August 24, 2007, from AICPA...

--References --> For suspicion A, you could convey made rough more examples and more in depth, like for Enron, you could have talked about virtually of the laws pertaining to it and other companies that have done the same. Very short, especially as you have stated that this is Masters level. Also, and more importantly, you dont actually answer the questions situate up to you. Initially it is stated that scandals were uncovered as a result of the changes in accounting and auditing process. However, you then go onto to do the Enron leave as the cause for these changes. The second part of the question is answered (?) in a similar way. The only example you have got of change is that the audit company went out of business. From your reference enumerate you have obviously researched/read the required information exactly havent quite a managed to work it into a cohesive install here. If you want to repair a full essay, order it on our website: BestEssayCheap.com

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