You may wish to use this week’s required and/or optional resources for reference or as starting points for your research. Then, in your group, discuss the following questions in your group’s Discussion area:
• Explain the financial risks, risk measurement, and performance measurements that financial analysts used to detect the fraud. Why was the fraud not identified earlier? How does the SOX Act prevent this from happening in the future, and how is the public protected?
• Describe what you have learned from examining Enron’s scenario and how it has changed your perspective as an accounting executive. What do you recommend for change? How have public accounting firms been affected by companies such as Enron and Worldcom? And is the SOX Act sufficient to protect the public? Or do you recommend other actions?
Working with your group in your group’s Discussion area, address this week’s strategic issues through a detailed 2- to 3-page response. Make sure to cite and reference all resources used for your responses.
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