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    This posting addresses destroying evidence and bankruptcy.

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    1.) One of the problems that Congress was concerned about was defendants who destroyed evidence might escape conviction via limitations in the coverage of existing statutes. Explain how the Sarbanes-Oxley Act (SOX) addresses this.

    2.) People who commit securities fraud and are fined by state or federal authorities, ordered to disgorge profits, or lose civil damage judgments may seek to avoid paying them by declaring bankruptcy and discharging those obligations. Explain how Sarbanes-Oxley Act (SOX) deals with this.

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    https://brainmass.com/business/financial-distress-and-bankruptcy/this-posting-addresses-destroying-evidence-and-bankruptcy-465953

    Solution Preview

    1.) One of the problems that Congress was concerned about was defendants who destroyed evidence might escape conviction via limitations in the coverage of existing statutes. Explain how the Sarbanes-Oxley Act (SOX) addresses this.

    This was one of the major issues in Enron. The auditors at their auditing firm, Arthur Andersen, began shredding documents by the box load as soon as it was known that the investigation was starting to unfold. The employees at Enron also began shredding, so now we had people in the company shredding ...

    Solution Summary

    The solution provides a detailed discussion with SOX reference sections regarding how SOX addresses the destruction of evidence and how SOX addresses declaring bankruptcy.

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