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Sarbanes-Oxley Act and Enron

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"Sarbanes-Oxley "covers auditor independence, corporate governance, internal control assessment, and financial disclosures" (Bennet-Alexander, 2011, p. 327). According to Ms. Watkins reasons for what went wrong it appears that had Sarbanes-Oxley been in place prior to 2002, companies like Enron would have had a much more challenging time doing what they did. In conclusion there were 23 people that were held accountable by the Department of Justice and SEC Investigations. Their punishments ranged from prison time, fines, probation, being listed as a felon, home prison, and being banned as a public office for a set period of time. While I feel that punishing those that committed the crimes is a step in the right direction to deter others from following in the same path, I do not feel that the punishments are sever enough considering the lives ruined and the investments lost as a result of blatantly unethical and illegal actions by many."

I need help with writing a response, and please include references!

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"According to Ms. Watkins reasons for what went wrong it appears that had Sarbanes-Oxley been in place prior to 2002, companies like Enron would have had a much more challenging time doing what they did."

It's important to note that Enron's board was in compliance with SOX before it failed and that stiff ...

Solution Summary

This solution provides additional details on the Sarbanes-Oxley Act and how it applies to Enron's corruption charges. All references used are included.

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Sarbanes-Oxley Acts

Hello Rahul,

As always, thank you for your help. I have a new short essay I need help with.

Thank you very much!!

Here are the directions for the essay:

During the last few years there have been a number of public corporations that have gone bankrupt at the expense their investors. Most would say an investor should expect to lose their money since there is a certain element of risk whenever you invest in the stock market. But in these high profile cases many of the investors were in fact employees of the firm who were investing in the firm through their 401K funds retirement programs.

The Sarbanes-Oxley Act has been passed to help cut down on some of the risk to investors whether they are company employees or pure and applied investors.

Define the Sarbanes-Oxley Act with special emphasis on the purpose of this legislation, how the act has been implemented, documented success of the act to this point. Evaluate if more regulations or laws are needed on the books.

Argue whether rank and file employees who are simply building up their savings should be considered and protected as another class of investor. As a specific example of this, one Enron Lineman had a 401K pension fund of $341,000 and in three days his pension fund was worth $1,200. Is it ethical to work all your life to arrive at this point or are these simply risks each investor takes. Do we have an ethical right to protect these investors?

Finally, does putting white collar criminals away for long periods of time seem like the best answer? Should they be working to repay their victims?

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