[Answered] ACCT 525 Week 1 Homework Assignment: The Sarbanes-Oxley Act – Phar-Mor Inc.

Week 1 Homework Assignment: The Sarbanes-Oxley Act

  1. The case of Phar-Mor Inc.
  2. Waste Management Case 1990
  3. Enron Scandal early 2000’s



Investor confidence in the financial reporting system was the driving force for the Sarbanes-Oxley Act of 2002. Phar-Mor is a good example of a company that falsified inventory at the majority of its retail locations to cover up significant fraud perpetrated by its top executives. For example, in the Waste Management affair, the company was accused of increasing its assets by doing things like capitalizing items that should have been left on the income statement. Finally, there’s Enron, whose intricate plot was only found when the company’s CEO resigned. Sox could not have stopped these incidents, but it did pave the way for the 11 regulations and provisions that make up the act that would help discourage such intricate frauds at future prominent corporations.……please click the icon below to purchase the solution at $20