The And Exchange Commission 's Mission Essay

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The Securities and Exchange Commission’s mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” The purpose of this paper is to examine three recent federal security laws to see if they uphold all parts of the SEC’s mission. The three laws to examine are Sarbanes Oxley Act (2002); Emergency Economic Recovery Stabilization Act (2008); and Dodd Frank Wall Street Reform and Consumer Protection Act (2010). The Sarbanes Oxley Act (2002) passed after the Enron fiasco of the early 21st century. Enron was able to trick investors by using Special Purpose Entities which was allowed through GAAP standards, but nonetheless failed to reveal the potential risks to the investors looking at its financial records. “Enron 's executives had in fact fraudulently reported profits, but not debts, inflating its stock value and enabling it to obtain some capital from ignorant financial institutions and other investors.” (Kaal, 2016) Therefore, the passing of the SOX Act provided two main points, the Public Company Accounting Oversight Board and Title IV. PCAOB holds public accounting firms accountable. PCAOB works in conduction with other CPA organizations, but it holds the ultimate authority over CPA organizations. Title IV requires the full disclosure for any Special Purpose Entities and the impact that they might have. Also pro forma calculations, figures based on future events that might occur, and personal loans to

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