Three underlying causes of the Sarbanes-Oxley Act were the Failure of Auditors to Discover Fraud, Captive Board of Directors and Security Analysis’ Conflicts of Interest. The underlying causes ranked from most important to least are Captive Board of Directors, Auditors to Discover Fraud, then Security Analysis’ Conflict of Interest. My rationale for Captive Board of Directors being most important is everything begins and ends with the company. A company’s board of directors owes its shareholders the utmost loyalty and good faith. An excellent example of this is Enron and WorldCom, in these scenarios many of the company directors shirked their responsibilities and functioned as captives of senior management, failed to exercise independent judgment and oversee the actions of senior executives as it relates to audit control. The second underlying cause is auditors to discover fraud. Highly respected accounting firms were implicated in the highly publicized scandals of Enron and WorldCom. These firms certified statements for these companies that later turned out to be misleading and fraudulent. This failure to detect the manipulation of financial records, and to at least conduct an independent inquiry for accuracy, was a prime indication that auditors relied fatefully on inaccurate assumptions of senior management. The third underlying cause is Security Analysis’ Conflicts of interest. An example of this is the mortgage backed securities that created the crash in 2008. Security analysis from many prominent investment banking firms issued glowing recommendations while failing to disclose that their employers had lucrative corporate finance deals with many of the same companies whose stocks they were recommending to investors. It is now...
... middle of paper ...
...ole. To actively participate in programs designed to promote appropriate behavior with high regards to integrity, ethic and compliance. For example organizational leadership, the board should work with management closely, set the organizations direction and review financial objectives. Compliance with laws, regulations and ethical policies, it is the boards responsibility to confirm that procedures are in place to prevent and detect illegal or unethical behavior. To be informed, taking the necessary steps to ensure management disclosures are accurate fair and complete. Companies must stay informed of new developments in corporate governance. And keep their employees a breasted as well. In addition have a ongoing monitoring program in place. Companies must take a proactive approach in setting standards and monitoring integrity to improve principles, values and growth.
and Investors Protection Act at the time when corporations like Arthur Anderson, Enron and WorldCom fell due to fraudulent accounting practices and bad internal control. This bill, sponsored by Mike Oxley (R-OH) and Paul Sarbanes (D-MD), became known as Sarbanes-Oxley Act (SOX).It sought to restore public confidence in publicly traded companies and their accounting practices, though the companies listed above were prosecuted on laws that were already in place before SOX. Many studies have examined
After major corporate and accounting scandals like those that affected Tyco, Worldcom and Enron the Federal government passed a law known as the Sarbanes-Oxley Act of 2002 also known as the Public Company Accounting Reform and Investor Protection Act. This law was passed in hopes of thwarting illegal and misleading acts by financial reporters and putting a stop to the decline of public trust in accounting and reporting practices. Two important topics covered in Sarbanes-Oxley are auditor independence
What is internal control? According to University of Phoenix, Axia College Internal Control and Cash (2009), internal control is all of the related methods and measures adopted within an organization to safeguard its assets and enhance the accuracy and reliability of its accounting records. The primary reasons for internal control are help companies protect their investments and merchandise against theft from everyone, including employees and to make sure that the accounting is done correctly and
The 1919 Black Sox Scandal In 1919, eight of the Chicago White Sox allegedly threw the World Series. Charles Comiskey was the ruthless owner of the White Sox and was the main motive of the sox to throw the series. Chick Gandil was the first player to get involved and then he spread it to the other players on the team. The act by these players would be called the Black Sox Scandal. The Scandal nearly ruined America’s pastime. The baseball commissioner, Judge Landis, banned all eight of the players
series. Corruption, money, greed, power, and even organized crime were major factors in this landmark game of 1919. This proves that even America’s pastime had it’s lowest point. Heading into the Series of 1919, the White Sox were considered the best team of the 20th century. The Sox boasted a lineup that included three eventual Hall of Famers; Collins, Schalk and Faber. In addition three others, Jackson, Cicotte and pitcher Lefty Williams—who were forging Hall of Fame careers. The Cincinnati Reds,
What has the game of baseball meant for Americans? For many baseball is a game of integrity, honesty, and without a doubt skill. When one of these factors is allowed to overtake the other it leaves the game unbalanced with lost priorities. Like everything else in life, baseball has rules and regulations which should be followed and enforced. The Baseball Hall of Fame honors persons who have excelled in playing, managing, and serving the sport. Having ten years of experience in the game and five
Field of Dreams - The Innocence in History [1] Baseball is America’s favorite pastime. When people hear the word "America," they think of apple pie, meat and potatoes, July 4th, and inevitably the everlasting love of this country, baseball. The credit is given to a man named Alexander J. Cartwright, who drew up a set of rules for a game played with a bat, a round ball, and a glove. Along with the rules came a sketching of a diamond-shaped field on which the game was to be played. The
Explain capitalism in your own words. (1 point) Capitalism is an economic and political system where a country's trade and industry is controlled by private owners in order to have a profit, rather than controlled by the government/state. Explain communism in your own words. Explain the Red Scare in America after World War I. Were fears of “reds” legitimate? (3 points) a.)Communism is where all property is owned publicly and every one works and is paid according to their needs and
today’s games leads back to Ruth. Home runs became the most important and dominating factor o the game, besides good pitching. At the age of 19 Babe Ruth began his baseball career, on July 11th of 1914 he played in the big league with the Boston red sox. His career was many years full of success, often referred to as the greatest base... ... middle of paper ... ... Ruth, along with others, came at a time when the country was looking for, and needed heroes, and the new commercial radio stations
Wolfsheim is a business associate of Gatsby’s. Arnold Rothstein reportedly paid eight White Sox players to intentionally lose the World Series in order to win a bet ("Black Sox Scandal”). The White Sox were later
therapist. However, Sean sees Will as a challenge and tells Lambeau to bring him back each week. In a later session, Will is particularly struck when Sean tells him how he gave up his ticket to see the Red Sox in the 1975 World Series (missing Carlton "Pudge" Fisk's famous home run in the Sox infamous "Game 6") in order to meet and spend time with a stranger in a bar, who would later become his wife. Will is encouraged to try to establish a relationship with Skylar (Minnie Driver), a young woman
two reading by Sigmund Freud. Next a deep clarification of each of the five terms (act, agent, agency, scene, and purpose) associated with a pentadic analysis. Then assign each term (act, agent, agency, scene, and purpose) with regards to my chose 1919 World Series example. I will then attempt to help clarify the motives that Joe Jackson uses as a scapegoat, by assigning ratios to the terms (agent/agency, scene/act etc.…), by assigning these ratios. Last I will then identify the most relevant concepts
ability to become both reflective and introspective will steadily but progressively improve. Become attuned to synchronicity. Work on aligning your external and internal environment and be cognizant that sometimes we receive subtle signs in life that can act as a powerful guiding force. Suspend judgement, and view coincidence as a form of communication, if you like a modern form of hieroglyphics, a kind of sacred language through which the Universe chooses to communicate. You will be surprised as how often
characters in the Shakespearean play Macbeth, is the wife of Macbeth, Lady Macbeth. Lady Macbeth is a very two sided character in this play. She consistently acts differently when she is with her husband than she does when she is not. There are various examples of this exhibitied in the play. One of the most notable examples of this is contained in Act I Scene v when Lady Macbeth reads the letter written to her by Macbeth. Shortly after reading it, she makes the comment that she feels Macbeth is too
After carefully considering the various theories regarding classroom management and addressing individual thoughts and concerns I have decided that my philosophy of classroom management will be a combination of medium and high control. I have chosen these styles of management because I can identify with the reasoning behind these levels of control. Unlike medium and high control, low control offers the idea of intrinsic motivation which I like; however, I feel that many students need extra guidance