Explore BrainMass

Business and Inaccurate Financial Statements

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

In part, many corporate scandals center on misleading or inaccurate financial statements (Enron, WorldComm, Global Crossing, and Tycho are examples from 2002 mentioned in Chapter 1). Also, the financial crisis in 2007-08 period included corporate failures in the financial sector and enormous losses for investors. With that said......

1.How do firms manage to mislead investors?

2.Do you feel reforms already enacted (like Sarbanes-Oxley or more recent reforms after the financial crisis) have or will make a major difference explain why?

3. Do you think additional legal or regulatory actions are needed?

Your response should be 300 words or less and include sources cited in apa

© BrainMass Inc. brainmass.com March 22, 2019, 3:30 am ad1c9bdddf

Solution Preview

I'm attaching the requested short analysis of this extremely complex question, in ...

Solution Summary

This paper discusses the possibility of controlling inaccurate and misleading financial information through financial regulation. The conclusion is that what's needed is not more regulation (current controls being largely ineffective) but better regulation aimed at a few key issues with significant leverage.