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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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Question 1

Describe the purpose of the Sarbanes-Oxley Act.

Question 2

Explain why there is not always a direct link between the level of profit a company makes, and the dividend it announces.

Question 3

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.

Question 4

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.