Between a Rok and a hard place.
Read the article Rok profits halve after accounting problems and then have a go at the questions below. You can either read the article in the window below, or follow the previous link to open the article in a new window.
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- Sarbanes-Oxley Act essentials
Describe the purpose of the Sarbanes-Oxley Act.
Explain why there is not always a direct link between the level of profit a company makes, and the dividend it announces.
Companies such as Enron, WorldCom and Tyco covered up, or misrepresented, a variety of questionable transactions. Examine the purpose and role of accounting practices and how Rok's accounts did not provide a 'true and fair view' of their business.
Accounts are a story in numbers. Using Rok as an example, discuss the view that the accounts of a company provide a good starting point to understand and investigate the performance of a business.