Instances in which corporations have been found in serious breach of accounting ethics by falsifying or manipulating information so that financial statements do not give a true and fair view of the company's performance.
The Enron scandal is a complex case of fraudulent accounting that led to the collapse of the energy giant Enron in 2001, one of the largest corporate bankruptcies in U.S. history, which subsequently led to significant legislative changes.
The Sarbanes-Oxley Act of 2002, often referred to as Sarbox or SOX, is a landmark piece of U.S. legislation designed to enhance corporate governance, financial transparency, and auditing standards in response to a series of high-profile corporate scandals, including the infamous Enron scandal.
