Reference no: EM133580255

Assignment: Accounting Law- Case Study Research Project

Learning Outcomes

This project meets our course student learning objectives, in which you will:

1. Assess potential legal liability for the accounting profession.
2. Identify the common characteristics and causes of ethical lapses, fraud, and inadequate audits.
3. Evaluate and apply the Sarbanes-Oxley Act of 2002.

Case Study

We will be doing a research project for our course project to analyze the effectiveness of the Sarbanes-Oxley Act of 2002. In our book we reviewed many case studies dealing with accounting fraud and scandals that led up to the enactment of Sarbanes-Oxley. I want you to research for accounting fraud and/or scandals that happened after 2010. You must find a publicly traded company on either NYSE or NASDAQ that been charged by the SEC for accounting fraud.

Task

The Research Project will consist of three parts:

Question I. Introduction to the Case Study. Here you will introduce the company and the accounting fraud and/or scandal that took place. You will include details as to the impact of the fraud and/or scandal to investors.

Question II. SEC Charge and Ruling. Describe in your own words the was the formal charge made by the SEC. What did the SEC say were the facts of the case? What was the official ruling of the case, for example what were the penalties, punishments, and/or remediations made against the company?

Question III. Did Sarbanes-Oxley impact the Case? After you have reviewed the SEC ruling:

Question 1. What are the specific rules in SOX that applied to this case? Do you think the company's internal controls failed to prevent this fraud and/or scandal from happening, and how so?

Question 2. Or are there no rules in SOX that could have prevented this accounting fraud and/or scandal from happening? What rule/s do you think were needed to prevent this fraud and/or scandal?