Enron scandal which took place in 2001 had become known all over the world for its unprecedented span. In accordance with BBC (2002) top management of the company was incriminated in concealment of the actual financial situation, namely: providing its stakeholders with irrelevant information about profits and debts of the company.
The current paper is to investigate causes and consequences of Enron scandal and discuss the Sarbanes Oxley Act of 2002 (SOX) points with respect to this case.
1. Brief Outline of Enron Crisis
Enron scandal had far-reaching financial and political implications which influenced economical and political life of the United States and the ...