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The Sarbanes-Oxley Act created the mechanism for governmental supervision of the liquidation of Enron and Arthur Andersen.
Sarbanes-Oxley Act
A U.S. federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms to increase transparency and protect investors from fraudulent financial reporting.
Governmental Supervision
The act of monitoring, regulating, and overseeing activities by state or government agencies to ensure compliance with laws and regulations.
- Acknowledge the impact of laws, regulations, and organizational culture on ethical behavior.
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Learning Objectives
- Acknowledge the impact of laws, regulations, and organizational culture on ethical behavior.
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