The Smartest "Guise" in the Room: Why America is Doomed to Repeat an Enron-Like Scandal

Publication Year:
2011
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Repository URL:
https://digitalcommons.coastal.edu/honors-theses/110
Author(s):
Reddington, Shayne
Tags:
Accounting; finance; scandal; Enron; Sarbanes-Oxley Act; Finance and Financial Management
thesis / dissertation description
There is no question that Enron has brought change to the landscape surrounding business practices both domestically and globally. After the Emon Scandal occurred, Congress passed a very controversial and groundbreaking legislative act known as the Sarbanes-Oxley Act as a means of stopping the conditions that made this widespread scandal possible. There are several reasons why another Emon-type Scandal is prone to repeat itself in the near future. One of the reasons is that Sarbanes-Oxley is not the perfect bill. Although the controversial Sarbanes-Oxley is a valiant effort to reform the environment that fostered Enron, there are major gaps and faults in the bill. Another reason is that there is no present evidence that proves the perception of accounting and finance has changed considerably. For there to be less of a chance of another scandal, it would be an absolute necessity that accounting and finance ethical standards shift considerably. These key causes of the Enron Scandal have gone unaccounted for (no pun attended), and until they are addressed the door is open for future corporate indignity.