Show:
Sarbanes-Oxley Act
Waste Management
HealthSouth
Enron
Accounting Fraud Miscellaneous
100
What year was Sarbanes-Oxley Act established?
2002
100
What years did the Waste Management scandal run through?
1992-1997
100
What year did HealthSouth miss their first earnings target?
1996
100
What year did Enron begin inflating it's profits?
1997
100
The obligation of a company to assess and be accountable for the company's effects on environmental and social well being?
Corporate Social Responsibility (CSR)
200
Who is the Sarbanes-Oxley Act named after?
Senator Paul Sarbanes and Representative Michael Oxley.
200
By how much were profits inflated over the five year period?
1.7 Billion
200
How many people were indicted of criminal charges for the HealthSouth Scandal?
17
200
What year did Enron file for bankruptcy?
2001
200
How would the magnitude of the Enron scandal be changed if SOX had been enacted prior?
Stronger internal controls, audit independence, more accountability
300
What was the main thing SOX set out to prevent?
Accounting Fraud
300
How many people were involved in the orchestration of the scandal?
6
300
Did HealthSouth's fraud end before or after the Sarbanes-Oxley Act was established? Which year did the fraud end?
After; 2003
300
What type of accounting did Enron use to inflate their profits?
Mark-to-Market
300
What was the name of the accounting firm involved in two of the scandals?
Arthur Andersen
400
Name one company that caused the creation of SOX?
Enron, Waste Management, and WorldCom.
400
Name one of the ways Waste Management used to manipulate financial results?
Depreciation expenses, salvage values, record of expenses, environmental reserves, establishment of reserves, and capitalizing expenses.
400
List one way HealthSouth committed fraud?
mergers and acquisitions, false cash statements, false reserves, and false statements on balance sheets.
400
Name one of the groups that helped facilitate the fraud.
Auditors, Board of Directors, Lawyers, Bankers
400
How was HealthSouth's scandal effected by SOX?
It was brought to a halt.
500
What is one of the three areas of financial standards that SOX was able to put a clamp on?
Corporate Governance, Security Analysis, Audit Work
500
How would SOX have changed the formulation of the scandal?
There are various answers but in general, more transparency and accuracy of financial statements.
500
Who was the CEO and owner of HealthSouth and what was he indicted for?
Richard Scrushy Bribing the Governor
500
What is another means Enron used to create their false wealth?
Fake companies and limited partnerships.
500
Which company falsified the most money on their books?
Enron