Explore BrainMass

Changes for accounting firms since the 1990s

1. Identify the ways in which the image of the public accounting profession, and auditors specifically, has changed since the mid-1990s. What actions have been taken to restore public confidence in the profession? Do you think these actions are effective? Explain.

2. What are the differences between and similarities among accounting and auditing?

Solution Preview

The collapse of Enron began a huge public awareness of accounting firms and tarnished their reputation as an industry. Shortly after Enron, a handful of other well known and fortune 500 companies were exposed for unethical accounting methods. Congress responded. The Sarbanes-Oxley Act was enacted 200. Enron's collapse was a result of unreported off balance sheet activities that amounted to fraud. Thousands were affected through investments, employment and pensions. The Sarbanes=Oxley act demands regulations for transparency of financial activity for ALL PUBLIC TRADED CORPORATIONS.

The regulations include guidelines for what must be reported and that includes all off balance sheet transactions. It outlines the scope of ...

Solution Summary

The solution describes the events that led up to congressional changes and requirements for firms and the roles of accountants and auditors. Describes the congressional actions and their implications on firms.