Question

What was the impact of the Enron scandal on financial reporting regulations?

The Enron scandal had a significant impact on financial reporting regulations. It led to the enactment of the Sarbanes-Oxley Act in 2002, which introduced major changes to the regulation of corporate governance and financial practice. The Act established new or enhanced standards for all U.S. public company boards, management, and public accounting firms. It also led to more rigorous oversight of companies by the Securities and Exchange Commission. The scandal highlighted the need for greater transparency and accountability in corporate financial reporting.

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The book captures your attention from the moment you begin to read Chapter One's You Can't Always Trust the Numbers. Headlines throughout the past few decades have told horror stories about corporations that have "tweaked" the books just enough to make it look like they were in the black and doing fine… but in reality they were just one step away from financial disaster. Remember the Enron story? It took years for accountants and prosecutors to sort out all of that ill-fated company's spurious transactions

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