- Determine what provision(s) of SOX was / were violated in the health care fraud case in question. Indicate whether or not SOX adequately provides sanctions to deter the behavior or if changes are needed to the regulations to remedy the issue(s) and thus ensure compliance.
- Based on the fraudulent activity that occurred, recommend two (2) improvements to the internal control environment to reduce those occurrences. Provide detailed recommendations.
In 1999, Ligand began to sell cancer drugs and received revenue from them, and by 2002 the company had product sales of 166 million dollars from the sale of these drugs. However, as of March of that year, the company recorded an accumulated deficit of 973.3 million. The irregular accounting practices found in the company's financial statements resulted in the publishing of restatements in 2002, 2003 and most of 2004.
Title III of the Act specifies the responsibility of corporate officers for the accuracy and validity of corporate financial reports. It enumerates specific limits on the behaviors of corporate officers and describes specific forfeitures of benefits and civil penalties for non-compliance. For example, Section 302 requires that the company's "principal officers" (typically the Chief Executive Officer and Chief Financial ...
The solution discusses the Ligand pharmaceuticals fraud situation.