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The purpose of this homework assignment is to allow you to research the Enron fraud case and the compliance requirements of the Sarbanes-Oxley Act. You are to complete the following components:
? Provide researched information and references documenting your findings. Identify elements of fraud and compliance laws that have been drafted as a result of Enron and other industries.
? Write an executive summary describing the Enron fraud case’s impact and the U.S. government’s reaction to it.
? Complete each section of the lab by following the instructions for the exercises in each section.
You will use a text document to develop your homework assignment by completing the sections listed below:

Lab 1.1a
From your computer workstation, create a new document called SOX Lab 1. Once you have created the document, complete the following exercises, and save your responses as the SOX homework assignment #1.
1. On your local computer, create the lab deliverable files.
o Review the following information about the Enron Corporation:
o Enron Corporation was an energy company that, at one point, was the seventh largest company in the United States and the largest trader of natural gas and electricity in the country. Enron started in the mid ‘80s and, by the ‘90s, the company was involved with trading and ownership in electric, coal, steel, paper, water, and broadband capacity. In 2001, Enron filed for bankruptcy, making it the largest bankruptcy in history at the time. An accounting scandal caused the company’s collapse. Thousands of Enron’s employees were laid off. Employees lost their life savings because of the loss of the company’s stock. Shareholders lost $11 billion.
2. On your local computer, open a new Internet browser window.
3. Using your favorite search engine, search for more information on the following topics regarding the Enron fraud case:
o early history of the investigation,
o misleading financial accounts,
o accounting scandal of 2001, and
o California’s deregulation and subsequent energy crisis.
4. In your homework assignment, summarize your findings and the differences between governance and compliance connected to the Enron case.

Lab 1.1b
1. Using your favorite search engine, search for more information on the following topics regarding the requirements of Sarbanes-Oxley:
o Incidents that led to passage of SOX Chronology of SOX passage from bill proposal through signing into law
o Pros and cons of Sarbanes-Oxley
o Sarbanes-Oxley Section 302
o Sarbanes-Oxley Section 401
o Sarbanes-Oxley Section 404
o Section 404’s consequences from small businesses
o Sarbanes-Oxley Section 802
o Sarbanes-Oxley Section 1107
2. In your homework assignment, describe the elements of the fraud Enron committed that led to the creation of SOX.
3. In your homework assignment, identify the other U.S. compliance laws that have been drafted as a result of the Enron case.

Lab 1.2
In your homework assignment, write an executive summary describing the impact of Enron’s fraud case, describe the components of IT assessments and IT audits, and the U.S. government’s reaction to it and to other industry compliance needs.

NOTE: When you submit your homework assignment, you should combine the assignments into one document for grading. Please clearly mark the answers for Lab 1.1a, Lab 1.1b, and Lab 1.2 within your submission by labeling those sections within your assignment.

Please make sure you use 1 of the 3 article PDF’s provided as one of your references.
Thank you,

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