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The Sarbanes-Oxley Act (SOX) & Accounting Scandals

SOX (Sarbanes-Oxley Act of 2002) is a major landmark in accounting history. It has brought into limelight stories of corporate scandals by Enron, Tyco International, Xerox, Merck, Waste Management, and Worldcom. More recently, scandals at Lehman Brothers, Swiss Bank, American Insurance Group (AIG), Citibank demonstrated that the fight over accounting standards, controls and transparency is far from over. Go online, find sources (remember to cite them at the end of your post!!!), read about SOX, and answer the following questions: 1. Briefly describe the reason and purpose of this act (make sure to check and read at least three sources. Do not base your response on fewer sources!) 2. List provisions of the act. 3. Pick one-two firms involved in the accounting scandals and tell us about the scandalous story, charges, losses, and the current status of the company.