Accounting Discussion paper

Please refer to these resources for this discussion:

  • Chapters 11, 12, and 13 in the Albrecht textbook
  • Financial Statement Fraud (Crazy Eddie’s) video – located in the Course Documents folder under ACFE videos
  • Smartest Guys in the Room – Enron documentary – located in the Course Documents folder

This week, we had the opportunity to explore some of the more egregious financial statement frauds from the past two decades. Many of these occurred prior to the enactment of Sarbanes Oxley (Enron, Worldcom, Waste Management, Adelphia, Tyco, Healthsouth, Qwest Communications, Cendant, and others). Other cases of financial statement fraud have surfaced after SOX was enacted, including Lehman Bros. and Fannie Mae.

Don't use plagiarized sources. Get Your Custom Essay on
Accounting Discussion paper
Get a plagiarism free paperJust from $13/Page
Order Essay

For this week’s discussion, choose one of the pre-SOX financial statement fraud cases and write a brief summary (2-3 paragraphs) that outlines:

  • What happened?
  • Who was involved?
  • How did they do it?
  • How were they caught?
  • What were the results (for both the victims and the perpetrators)?

In addition to this summary, write a brief evaluation of how you think SOX might have impacted and/or changed your case study. Would it have still been likely to occur? Would it have been reduced in severity or duration? How might it have changed things for the victims? the perpetrators? For this part, I recommend that you refer to Appendix A at the end of Chapter 11 in the textbook and the discussion that ensues there, including the consideration of the Fraud Triangle presented in Table 11A.1. Would SOX have made a difference in your chosen case? If so, how? If not, why not?

There are, of course, widely varied opinions of the effectiveness of SOX. Kayla Gillan, a former deputy chief of staff to the Chairman of the SEC, believes that SOX has been a beneficial and successful new law. She believes that, while no legislation can entirely eliminate financial statement fraud, SOX has been effective in rapidly increasing investor confidence. Despite acknowledging that SOX has increased the cost of participating in capital markets, she stated that many believe that the benefits far outweigh the increased costs. She believes that internal controls are more effective, auditor standards are more stringent, auditors are more competent and engaged, and the SEC has become more effective. She believes that the purpose of SOX legislation was to enhance investor protection and that it has largely accomplished this.

On the other hand, there are those that believe that SOX has largely been a failure. Billionaire investor Mark Cuban, when considering the SEC and the experiences of startup companies, feels that SOX has made it much more difficult for companies to go public because of the increased costs associated with SOX. There are many more opinions on both sides of this argument. When it comes to preventing and reducing financial statement fraud, what do you think? Has SOX been a help or a hindrance?

In summary, for this discussion (per the guidelines above):

  1. Write a 2-3 paragraph summary of a pre-SOX case study of financial statement fraud (20 pts.)
  2. Write a brief evaluation of how you think SOX might have impacted and/or changed your case study (10 pts.)
  3. Discuss whether SOX has been successful in reducing financial statement fraud. (10 pts.)

Homework Valley
Calculate your paper price
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.

Free Revisions

All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.


A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.


Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.

Originality & Security

At Homework Valley, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.

24/7 Customer Support

Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work around the clock to see best customer experience.


Flexible Pricing

Our prices are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.


Admission help & Client-Writer Contact

When you need to elaborate something further to your writer, we provide that button.


Paper Submission

We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.


Customer Feedback

Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.