The pillar of the changes occurred in financial reporting after the accounting scandals is based on increased transparency and more support in conducting audit operations. The XBRL system for instance will allow the Securities and Exchange Commission to conduct analyses in a more efficient manner. All efforts to improve the financial reporting system have been condensed into the Sarbanes-Oxley Act. It represents the most important regulatory act of the past 70 years and it is applicable all around the world; it addresses issues that refer to all players in the corporate reporting chain.

References

Bautista, L.R., 2004, Implications and Effects of Sarbanes-Oxley Act, Securities and Exchange Commission, Retrieved at http://www.adbi.org/conf-seminar-papers/2006/03/30/1739.implications.effects.sarbanesoxley/onMarch 13, 2009

r /> Cooper, C., 2007, Extraordinary Circumstances: The Journey of a Corporate Whistleblower, John Wiley and Sons
Lee, H., Effects of Sarbanes-Oxley Act of 2002 and SEC Final Rulings on Auditor Independence, SUNY Institute of Technology, Retrieved at http://www.sba.muohio.edu/abas/2003/vancouver/lee_auditor%20independence.pdfonMarch 13, 2009

Malpass, a., June 2, 2002, hp_:I/help animals.net/news artic/91719, Quoted by Hannon

August 22, 2002, Enron Scandal at-a-Glance, BBC News, http://news.bbc.co.uk/1/hi/business/1780075.stmlastaccessed on March 13, 2009

2002, Sarbanes-Oxley Act of 2002, Website of the Sarbanes-Oxley Act, http://www.sarbanes-oxley.com/section.php?level=1&pub_id=Sarbanes-Oxleylastaccessedon March 13, 2009

Creative Financial Analysis Limited, Part 2, Exhibit H - Accounting Red Flags