The Sarbanes Oxley Act

2060 Words Nov 25th, 2014 9 Pages
As the complexity of our financial economy develops it is important that our accounting standards progress in accordance. Accounting is very important to the development of the global and local economies. Accounting is basically the gathering, summarizing and presenting of financial information of an entity to interested internal, external and possible investors. This information should be presented in a non-bias way so that other people are able understand.
As the complexities of manufacturers and businesses develop globally, gathering and interpreting financial data becomes more intricate and complex. With a web of laws and regulations that are left to interpretation and are too complicated for even the most experienced professionals, it leaves ample room for manipulation and exploitations of these laws. The catastrophe that a single company could cause was underestimated at the turn of 20th century. The outcome and aftermath of this scandal with respect to a couple of other scandals prior, caused the United States to reformat how businesses regulated and implemented more fail safes for whistleblowers. Other countries have even adopted many parts of the Sarbanes-Oxley act. These changes not only marked a turning point for the United States but they have also altered the fundamentals and the responsibilities expected from businesses globally.
Enron was started in Texas and was formed after a merger of Internorth and Houston Natural Gas in 1985. The company initially…

More about The Sarbanes Oxley Act

Open Document