Enron: The Sarbanes-Oxley Act

Enron grew into the nation’s 10 largest company before collapsing after a rival backed out of a deal to buy Enron. Since the company decided to back out and not buy Enron, many of Enron’s big trading partners stopped doing business with them. Dynegy, Enron’s rival company, backed out of buying the company when learning that Enron was billions of dollars in dept and was in severe complex partnerships. The Sarbanes-Oxley Act is a “federal law that is a comprehensive reform of business practices.” This law set standards for public accounting firms, corporate management, and corporate boards of directors. After a several accounting scandals between the years 2000-2002 is connected because it reminds the people that new laws needed to be passed