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Unformatted text preview: the company's profits on the financial records. They unfortunately chose to accomplish the latter by, basically, LYING !! They MADE UP numbers. The financial statements, as a result, were COMPLETELY FAKE. Result : Thousands of investors were duped. Many of them lost a LARGE percentage of their retirement plans. Those people were justifiably angry. Once these cases came to light (one after another), Congress could NOT ignore the situation. Hence, SOX. Now companies MUST use an independent and external auditing firm. No more "Be our accountant/auditor AND 'management consultant' at the same time." End result for investors : They are STARTING to regain trust that the financial statements of publicly-traded companies are, in fact, honest and accurate....
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This note was uploaded on 11/21/2011 for the course ACC 260 260 taught by Professor Riley during the Spring '11 term at University of Phoenix.
- Spring '11