Accounting Scandals in the early 2000s

During the early 2000s, the role of hi written report and the auditing profession qualifyingd and several business relationship scandals were uncovered. a.What conditions caused accounting and the audit profession role to change during this prison house term?The Enron scandal is one of the biggest from the early 2000s. Everything close to this fiasco is huge, including a $50 billion bankruptcy, and employee retirement accounts drained of more than 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 outside(a) auditor. period working on internal controls, they had to attest to their ferment figures. This resulted in huge doubts being placed upon the accounting profession. Additionally, pelf restatements manifold between 1997 and 2000, and Enron reported $600 million in losses. Investors were alike losing on market capitalization from audit failu res. b.What major changes occurred as a result of the accounting scandals at that time?The Sarbanes Oxley bout of 2002 (SOX) was created in response to the large corporate scandals, including Enron. SOX was engineered to set rules for compliance. The fuddled 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 nearly fundamental reform of SOX was the Public Company write up Oversight Board (PCAOB), which was created to oversee auditors of public companies in decree to protect the interests of U.S. investors. Arthur Anderson went out of business following their decline and indictment, and this was the cow chip 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.busine ssweek.com/magazine/ message/02_04/b3767712.! htmSarbanes-Oxley motivate of 2002. Retrieved August 24, 2007, from AICPA... --References --> For header A, you could convey made rough more examples and more in depth, like for Enron, you could have talked about many 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 make 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 go on 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 score of change is that the audit company went out of business. From your reference come you have obviously researched/read the required information except havent quite a managed to work it into a cohesive minute here. If you want to repair a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay