Question 4 from P. 308

802 Words4 Pages
Homework From your Trusted Criminals text, answer the following question: • Question 4 from p. 308 • Identify three federal regulatory agencies with specific responsibilities relating to white collar crime; describe the jurisdictions of these agencies. Which agencies appear to be most effective, and which agencies appear to be least effective—or even counterproductive—and why? What factors specifically influence how agencies operate? SEC regulates private and public companies. Protects investors. Sox was created to reduce statement fraud, after the fraud scandal by Enron and WorldCom. It was created to establish higher standards in companies accounting procedures. To make sure that the information provided in the financial statements is accurate. Also to be able to penalize the individuals responsible for the fraud and to provide protection to the individuals that provide information about fraud committed in the companies. The PCAOB was established by Congress to oversee public companies audits to protect investors and public interest. This is a non-profit company and is funded by fees charges to public companies. SEC oversees PCAOB, the standards and budget. PCAOB is authorized to investigate and sanctioned public accounting firms and every individual associated with the firm. Yes, it has assistance from, The Office of Research and Analysis (ORA) supports PCAOB and oversees the board’s activities. ORA identifies audit issues that would make the audit fail. Sanctions could be a fine and/or suspension or revocation of the firm. The Federal Trade Commission is an agency to protect consumer from anti-competitive business practice, (monopoly) I believe that is a waste of an agency. There are quite a few big corporations that merge with other ones and still operate as individual corporations, but are just one. One example of that is AT&T. This

More about Question 4 from P. 308

Open Document