1. Enron and the Sarbanes Oxley Act
Enron created Special Purpose Entities (SPE's), otherwise known as off-book partnerships, and the executives used these partnerships to hide their large amounts of debt as well as record profits by taking out large loans in the SPE's name to purchase assets and conduct business without ever reporting the liability of debt on their balance sheet (Buckstein). ... Before further discussing the changed SOX had, it is important to note that the law was not revolutionary in terms of the substantial changes it made but it was revolutionary by the attitude and culture change that the rules a...
- Word Count: 3410
- Approx Pages: 14
- Has Bibliography
- Grade Level: Graduate