The Enron scandal had a significant impact on financial reporting regulations. It led to the enactment of the Sarbanes-Oxley Act in 2002, which introduced major changes to the regulation of corporate governance and financial practice. The Act established new or enhanced standards for all U.S. public company boards, management, and public accounting firms. It also led to more rigorous oversight of companies by the Securities and Exchange Commission. The scandal highlighted the need for greater transparency and accountability in corporate financial reporting.
Financial statements do not always tell the entire story about a company. Accounting methods and fi...
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