Enrons impact on the accounting profession, along with other well-known frauds that were uncovered around the same time, was huge. Shockwaves were felt across the country, across Wall Street and across the accounting profession. The results of the frauds and their subsequent investigations can still be felt in public practice. The Sarbanes Oxley Act (SOX) was a direct answer to questions raised by the public regarding the accounting profession. CPAs were once considered more ethical than priests, but after the fraud era, that was not the case.

You will primarily need to reference pages 4-7, the Principles of Professional Conduct, of the AICPA Code of Conduct. The full document is contained in the Week 5 materials, in case you have questions, need clarification, or want more detailed information in this regard.

As you watch the movie, The Smartest Guys in the Room, pick out some of the violations of the AICPA Code of Conduct. Also, look over the Sarbanes-Oxley Act and find some of the sections that you think were a result of Enron and the other large scandals of the time.

Submit a 2-5 page, double-spaced paper, using an 11 point fontof Times New Roman with 1 margins that explains how Enron and its auditors violated the Code of Conduct and influenced SOX. This doesnt need to be a research paper. You are notexpected to spend hours in the library. You should have everything you need in front of you to answer the questions and provide your opinion. (Simple Yes/No answers alone are not acceptable.)

Keep the following questions in mind:

1. Is the Code of Conduct reasonable in its expectations?

2. Does it preserve the integrity of the profession?

3. How was SOX designed to keep another major fraud from happening?

4. What do you think about the major players, the actions they took and their ultimate fates?