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Unformatted text preview: Signed into law on July 30, 2002  Response to highly publicized corporate scandals  Provisions affect corporate governance, accounting, and auditing  Purpose is to restore investor confidence Enron  Material misstatements due to fraud: off-balance sheet financing, abuse of fair value accounting rules  Outcome: $3 billion in required restatements. Largest bankruptcy in history. Auditor Arthur Andersen convicted (later overturned) of obstruction of justice. Big 5 Big 4  Key Players: Ken Lay, Jeff Skilling, Andrew Fastow, David B. Duncan  Whistleblower: Sherron Watkins  WorldCom  Material misstatements due to fraud: capitalization of expenses, improper use of reserves  Outcome: First 4 billion then 11 billion in restatements. WorldCom bought out by Verizon  Key Players: Bernard Ebbers, Scot Sullivan, Mike Meyers, Betty Vinson, Buddy Yates...
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This note was uploaded on 02/09/2011 for the course ACCT 407 taught by Professor Smith during the Spring '11 term at University of Louisiana at Lafayette.
- Spring '11