bus math qrb 501 wk4 qu-2

Business Math, Ch. 21

Sarbanes-Oxley & others

Bringing up these topics often makes those who were listening to the news during Enron and the subsequent scandals remember the Sarbanes-Oxley act.  At the time this law was passed, the company for which I work was a public company (it has since become private again).  One of the big things I noticed on my job as a result of this new law was the new way we were asked to report expenses.  To avoid fraudulent expenses on the books, it is required that the highest ranking employee at a dinner, for instance, submit the expense for reimbursement.  This practice was put into place because there had been embezzlement taking place through the submission of expense reports by a subordinate at the request of his/her boss, then the boss would sign the expense and pass it along for reimbursement.

This was one small way that our reporting practices changed.  You might be curious about some of the laws that have been passed to govern the securities industry.  If so, here's a great list from our federal government's Securities & Exchange Commission:

https://www.sec.gov/about/laws.shtml