Government Regulation in the Accounting Industry

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Government Regulation in the
Accounting Industry
Rebecca Gregory
Kaplan University Outline
Securities Acts of 1933 and 1934
• Brief History of the Securities Act of 1933
• Objectives of the Securities Act of 1933
• Summary of the Securities Act of 1933
• Necessity of the Securities Act of 1934
• Summary of the Securities Act of 1934
• Peat Marwick Fraud/Scandal
The Foreign Corrupt Practices Act of 1977
• Brief History of the Foreign Corrupt Practices Act of 1977
• Summary of the Foreign Corrupt Practices Act of 1977
• Kellogg Brown & Root LLC Fraud/Scandal
Sarbanes Oxley Act (SOX)
• The Purpose of SOX
• Summary of SOX
• US Bank of Seattle Fraud/Scandal

Government Regulation in the Accounting Industry
The Great Depression and the Crash of 1929 led the United States into the beginning of new regulations. The first of these regulations was the Securities Act of 1933, which had a goal of prohibiting deceit, misrepresentation, and fraud in the sale of securities.
The abusive practices of many banks and Wall Street firms resulted in the creation of the Securities and Exchange Commission (SEC) in 1934. It was established by The Securities Act of 1934 and gave the SEC power to monitor the sale of securities in the U.S.
As a result of SEC investigations in the 1970's, it was discovered that many businesses were making payments to foreign officials for the purpose of obtaining or retaining business with them. Therefore, Congress enacted the Foreign Corrupt Practices Act of 1977 (FCPA) to stop the bribery of foreign officials and to restore public confidence in the integrity of the American business system.
The Sarbanes Oxley Act was introduced in 2002. It was created to protect investors after the many corporate scandals of companies such as Enron,…...

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