A History and Reasoning Behind the Sarbanes-Oxley Act 2002

Enron was founded in 1930 and was origin in ally known as Northern inscribe Gas Company. It was a conglomerate of the Northern American course and Light Company, Lone Star Gas Company, and the United Lights and Railways Corporation. In 1979 Northern Natural Gas Company was restructured under the InterNorth Inc. holding company. by and by the purchases of competitor Houston Natural Gas company in 1985 the company was renamed Enron with Kenneth Lay emerging as Ceo. Enron continued to gain wealthy over the years eventually trading more(prenominal) whence 800 different products online including, but not limited to publicise try Management, Coal, Electricity and power, Facility Management, Media Risk Management, Lumber, Plastics, Steel and touch Energy. By August 2000 Enrons stock had r all(prenominal)ed 90 dollars per sh atomic upshot 18. In about one that same stock would evenfall to 30 cents per share. The question is how could a line of merchandise at the pinnac le of its report be destroyed, financially, so quickly? Especially, with all the safety protocols that are supposed to be used. The answer was un taged by and by squiffy scrutiny of Enrons financial records. Enron had developed onshore business entities, or a unit with sole determination of evasion of taxes, which raised the profit cleverness of their business.

These offshore entities allowed owners and management with the ability to cover any and possibly all loss each quarter. On the alfresco it seem nothing could prohibit the changeless upward growth of Enron as a whole. However, the accountin g wizards of Arthur Anderson where fussy u! nderdeveloped new ways to outwit and outmaneuver the IRS and another(prenominal) outside auditing services. The use of these offshore entities drove the stock toll up to new levels at which point top executives at Enron began to resolve on insider selective information and trade millions of dollars of Enrons stock. After Enrons stock reached $90 per share the top executives with insider information in regards to the hidden losses, began to sell their stock. Financial...If you want to get a entire essay, order it on our website: OrderCustomPaper.com

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