SOX and Standard Setting After Several Highly-Publicized Accounting Scandals in the U.S.such

question 79

Essay

SOX and standard setting After several highly-publicized accounting scandals in the U.S.such as Enron, Sunbeam and WorldCom, all of whom, coincidentally, were clients of the now basically defunct public accounting firm of Arthur Andersen, the U.S.regulators enacted the Sarbanes-Oxley Act (SOX). Pressure was put on Canada to follow a similar course.Explain what Canada has done to make public companies more accountable.

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Definitions:

Common Stock Dividend Distributable

A liability on the balance sheet representing the amount of dividends that have been declared by the company but not yet paid to shareholders.

Liability Account

A financial accounting term for obligations or debts that a company owes to others.

Stock Dividend

A dividend paid to shareholders in the form of additional shares of stock, rather than cash.

Corporate Assets

Assets owned by a corporation, including cash, inventory, property, and intellectual property, that are used in the operation of the company.