Affirmative Adaptation And Modernize Resulting From The Scandal

1493 Words Jun 8th, 2016 6 Pages
Affirmative Adaptation and modernize resulting from the scandal In today’s society the desolation of Enron has been one of the greatest disasters to hit a major United States corporation, nevertheless the actions of this deception let to Varity major future benefits. The effects of Enron without a doubt are primarily disadvantageous. However, although Enron has made illegal and unethical choices the company has paid the ultimate penalty by “Declared bankruptcy on December 2, 2001 after restating earnings in the 3rd-quarter 10-Q, indicating major problems with special-purpose entities. Investigations by the SEC, Justice Department, and others; executives indicted and class-action lawsuits filed (Giroux. 2008). Whereas many perceive the Enron scandal as a total disaster there has been many optimistic out comes that has surfaced from this scandal. To prevent future financial fraud the U.S congress developed The Sarbanes-Oxley Act of 2002,which was enforced by the U.S. Securities and Exchange Commission.The Sarbanes-Oxley Act is one of the most monumental acts issued by the U.S congress to safeguard investors and shareholders from company’s misrepresentation their financial information. This also forced companies to follow specific guidelines and if they did not comply they could be audited or faced with legal action. In my perspective I found this outcome of the Enron scandal constructive, many of the guidelines created by the United States…
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