InterNorth, a leading affiliate of North Natural Gas, was formed in 1979. InterNorth and Houston Natural Gas Company merged in 1985 to form Enron Corporation. Kenneth Lay became CEO, and he moved the headquarters from Omaha, NE to Houston, TX shortly after the merger. By 1989, Enron had become one of the leading natural gas distributors in North America after acquiring a large of natural gas pipeline network. As energy markets became deregulated, Enron exploded into the energy market and was allowed to sell energy futures, which are contracts to deliver product at a future date. Enron continued to expand rapidly, moving into the water sector by establishing Azurix,...
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...inancial statements. Companies that use off-balance sheet accounting must be in accordance with the Generally Accepted Accounting Principles, and they cannot give a deceptive appearance to the company’s financial well being. In Section 802 it states that anyone who alters, destroys, mutilates, conceals, falsifies records or documents with fraudulent intent will face prosecution. Independent auditors are also subject to prosecution for failing to upkeep all audit or review papers for a timeframe of 5 years.
There have not been many favorable opinions supporting the Sarbanes-Oxley Act (restructure this sentence). Investor confidence increased as more corporations produce reliable financial reports, which result in more activity on the stock markets. Some companies increase their productivity by upgrading computer systems that facilitated an efficient workflow.
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