Sabanes0-Oxley Act --- to prevent internal control crime

last week, in ACCT202, we had a wrinting assignment about Sabranes-Oxley Act. The Act was enacted after a series of scandals in American economic society. The most impressive one, the collapse of Enron, the largest bankruptcy in U.S. history, “led to thousands of employees losing their life saving in 401(k) plans tied to the energy company’s stock” After that, Arthur Anderson, Enron’s auditing firm which is the fifth largest accounting firm in the world, and WorldCom, the most famous telecom company also broke out their own scandals which shocked the whole world. From these scandals, we can see that there were some problems that existed in these big companies in the aspect of authorization, verification, and the most important one is the aspect of internal control. There should be legislation or a law enacted in the whole country in order to authorize and supervise these big companies’ behavior in accounting or finance aspects. So in this case, putting the Sarbanes-Oxley Act into practice has its own historical significance.

although what we talked about is from the accounting point of view. but i believe there should be similar cases happend in economics field. did you find something related to that?