Post Enron Era - 4022 Words

Post-Enron Era By: Brenda Palmer Management 320 Week 8 The post-Enron era has brought on many new changes in the way businesses are to conduct business and to keep in line with the laws and not to fall into the Enron mistakes and mistrust. Before Enron, many people including employees, stakeholders, shareholders, board of directors and people in the communities had high trust in corporations and didn’t for see any corruption. Either it was blatant what ethical issues and laws were being misused and/or broken or they were good at keeping a low profile of deception. Millions and billions of money has been lost and stolen from the†¦show more content†¦These include questions of accounting for stock options and financial derivatives contracts, the possibility of replacing our current rules-based accounting system with a principles-based system, and oversight of the implementation of the accounting reforms mandated by the Sarbanes-Oxley Act.†[viii] â€Å"Congress’s intent in passing Sarbanes-Oxley was to restore confidence in financial markets by increasing corporate accountability, enhancing public disclosures of financial information, and strengthening corporate governance. More severe criminal penalties for securities fraud were also enacted. The most difficult phase of implementation has been launching of the Public Company Accounting Oversight Board, created by Sarbanes-Oxley. The PCAOB’s mission is to regulate the auditors of publicly traded companies and to ensure that corporate financial statements are subject to tough, outside scrutiny and that the auditor-client relationship is free from commercial conflicts of interest. Accounting for stock options is a long-standing controversy. Under current accounting rules, stock options granted to executives and employees are generally not counted as a cost to the company, unlike other forms of compensation. The post-Enron scandals have sharpened the dispute. The growing disparity between CEO and rank-and-file pay was widely reported during theShow MoreRelatedThe Fall Of Major Telecommunications Company Onetel And Enron1319 Words   |  6 Pages OneTel and Enron were huge technology companies, dominating the competition that they faced although - everything changed. Both of these companies operated in the same era, coincedently both suffering financial collapse. 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