This legislation was created as a result of numerous fraudulent corporate instances prior to 2002 which resulted in weakened US markets and little to no trust from investors. The general purpose of this legislation was to implement new rules in the accounting industry that hold higher level accounting personnel accountable in accounting schemes and regain the confidence of investors as it pertains to the US market in hopes that the market will strengthen as a result of the new rules (Bing, 2007). The Sarbanes-Oxley Act of 2002, which I may refer to as SOX moving forward, is made up of eleven titles and various sections within these titles (United States Code, Sarbanes-Oxley Act of 2002, 2002). Some of the titles and sections that are of importance to the fraud of Phar-Mar Inc., Waste
Sarbanes-Oxley Law Stephanie Mosley ACC 340 University of Phoenix Richard Calabria 07/23/2012 To enhance the dependability and accountability in an effort to safeguard shareholders, the federal government for the United States of America established the Sarbanes-Oxley Act on July 30, 2002. The Public Company Accounting Reform and Protection Act of 2002 is also used to refer to this law. Numerous acts of corruption in the business sector continued throughout the late 1990s as well as early part of 2000 with no laws to prevent it. In response to the very public case of WorldCom and Enron fiscal scams, the Sarbanes-Oxley Act of 2002 (commonly called SOX) was passed to protect the public and investors from unfair practices and accounting mistakes (Rouse, 2007). In order to safeguard shareholders, the president at that time President George Bush pushed for the act to get passed by the Senate and House of Representatives.
April 8, 2012 Tax File Memorandum From:., CPA. M.A.F.M Subject: Mr. Jones Taxpayer Engagement On today April 5th, 2012 I met with Mr. Jones regarding our Previous Meeting on April 2nd, 2012 to discuss some questions and possible outcomes about potential future financial investment decisions, and the tax ramifications of these decision and possible outcomes. Facts: Mr. Jones is considering the purchase of a manufacturing company Smithton Widgets which is very profitable. Mr. Jones is a majority shareholder in another C-Corp. Known in this case as Johnson Services which has accumulated significant losses.
Belleville Woman Guilty of Fraud (February 17, 2012) Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Stephanie Reeves, 35, of Belleville, Illinois, has entered a plea of guilty in federal district court on February 17, 2012, to a one count information charging that Reeves committed bankruptcy fraud by falsely claiming that she was in bankruptcy, in order to stop collection efforts by a business to which she owed money. At her plea, Reeves admitted that she utilized the bankruptcy documents of another person by placing her name on the court forms and then sending them to a lender in order to gain benefit of an automatic bankruptcy stay to which she was not entitled. The charges resulted
SEC Complaint against NutraCea SEC Complaint against NutraCea Professional Research for Accountants August 24, 2014 SEC Complaint against NutraCea NutraCea is known for its manufacturing and selling of products which are related to health food. The SEC Complaint presented entailed matter about the entities sales and financial reporting of those sales. The main issue presented by the SEC was how the corporation falsified financial information as reported by Phoenix, Arizona based NutraCea and some of its accounting and senior management teams during the 2007 fiscal year. This complaint was filed directly by the SEC upon their realization that there had been an overstatement within the sales revenue for
Citigroup Inc. had chosen to allow greed to take over their responsibility to provide honest and forthright financial advice. As more and more months passed, by the end of 2002, the aftermaths of multiple accusations played a toll on the company’s financial stability, so much so that, they had no choice but to face their accusations of selling false financial information and choosing to implement unethical behavior to gain financial advantages. Citigroup Inc. was facing allegations, which carried a penalty of billions of dollars, due to the costs of regulatory ad private litigations. Citigroup Inc. had single-handedly managed to ruin people’s lives, ruin their reputation, and damaged the credibility of other Wall-Street financial
Sarbanes-Oxley Act Peggy Baker Liberty University May 1, 2011 Abstract Financial statements are a means of communication between companies and investors. The information provided in financial statements has not always been true. The collapse of companies such as Enron, the scandals that followed, and the distrust from the public caused lawmakers to create the Public Company Accounting Reform and Investor Protection Act of 2002. This act is now known as the Sarbanes-Oxley Act. The Sarbanes-Oxley Act’s (SOX) main provisions include: (1) oversight board, (2) corporate executive accountability, nonaudit services, retention of work papers, auditor rotation, conflicts of interest, hiring of auditors, and internal controls.
Senator McCain on the other hand says that he would order the secretary of the treasury to immediately buy up the bad home loan mortgages in America so that people are able to make their mortgage payments and retain their homes. He accuses Senator Obama and his friends in Washington of making risky loans and giving them to people who could never afford to pay back. He accuses Senator Obama to be the second highest recipient of Fannie Mae and Freddie Mac money in history. Senator McCain criticizes Senator Obama’s liberal big spending recording in the US Senate and his involvement in pork barrel projects. Senator McCain explains his record of bipartisanship and says that the situation today cries out for bipartisanship.
IRS Controversy: What's the potential fallout? Yes, this news story goes in-depth and breadth. It goes around the controversy of the IRS saying that the IRS has ineffective management" led to IRS tea party targeting. "Despite repeated calls for cooperation, the agency failed to be completely truthful in its responses to the Committee during its nearly two-year long investigation of this matter, and in testimony before the committee," they wrote (Condon, May). While under the investigation the IRS has led Congress to believe that after lawmakers question the IRS over the undue scrutiny the agency put on conservative groups that filed for tax-exempt status during the 2012 elections, they'll want to take action -- to hold people accountable and eventually consider legislation to amend any systemic problems that led to this kind of political discrimination.
Many still searched for clues to put him and his administration behind the scandal. When it came into light that the Nixon administration had been behind the scandal, President Nixon resigned in August of that year. While historians are not sure whether Nixon knew about the Watergate espionage action before it happened, he took steps to cover it up later, raising “hush money” for the burglars, trying to stop the Federal Bureau of Investigation (FBI) from examining the crime, destroying evidence and firing uncooperative staff members (HISTORY.com). His successor, Gerald Ford, immediately pardoned Nixon for all the crimes he “committed or may have committed” while in office (HISTORY.com). Although Nixon was never prosecuted, the Watergate scandal changed American politics forever, leading many Americans to question their leadership and think more critically about the presidency (HISTORY.com).