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.
Project Requirements
The Research Project will consist of three parts:
1. 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.
2. 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?
3. Did Sarbanes-Oxley impact the Case? After you have reviewed the SEC ruling:
a. 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?
b. 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?
Learning Outcomes
This project meets our course student learning objectives, in which you will:
• assess potential legal liability for the accounting profession.
• identify the common characteristics and causes of ethical lapses, fraud, and inadequate
audits.
• evaluate and apply the Sarbanes-Oxley Act of 2002.
You will put together the Research Project in a word document, 12-point font, double spaced.
You will need to follow MLA format for referencing your paper. The paper is to be between 3
to a maximum of 5 pages.