That was, when everyone discovered that you simply can’t always win. It took high gambles and made great promises to investors. EnronĮnron was a company investing and trading in the worlds of energy. To get a full history of the company, have a look at the Wikipedia WorldCom page. As they are investments, they can’t be applied to normal expenses. These costs (or investments) normally are used for buying assets, or increasing the value of assets. One of the frauds discovered at WorldCom was the use of capital expenditures (CAPEX) while they were actual normal expenses. To continue showing great figures and pumping up the share prices, companies may fall into less ethical practices, like accounting fraud. Big companies have to take huge risks to be competitive and valuable for their shareholders. Most of us might remember the name WorldCom, which was the second largest telecom provider in the US. The goal of SOx is to reduce fraud and make people responsible if they are guilty of committing to fraud. This includes jail time and high fines, to ensure fraud won’t be unpunished. The Sabanes-Oxley Act, SOx for short, now applies to all companies who like to have their stock exchanged at the New York stock exchange (NYSE). Still there are some lessons we can learn, followed by a great documentary to watch about Enron. Usually from a sysadmins point of view, work doesn’t get easier due to these compliance requirements. If you are involved with Linux security, you might already have come across SOx compliance.
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