Acc 290 Week 5 Weekly Reflection Summary

Weekly Reflection Summary

ACC 290

In 2002, the Sarbanes-Oxley Act (SOX) was enacted because of several high profile companies conducting shady accounting practices. The bankruptcy of Enron in 2001 totaling 62 billion in assets financially crippled employees and retirees of the Enron Corporation. The shear lack of attention and respect of the accounting system by corporate officers of Enron had to be addressed. Several things where put in place to ensure this type of financial disaster would not happen again. The internal control principles are the primary control solutions. The corporate officers are required to review, approve, and sign off on all financial statements.

SOX has affects the practice of accounting because it lead to the...