Discussion 1: "Profitability"

Respond to the following:

• As part of the Sarbanes-Oxley Act, corporate officers are no longer able to "pass the buck" of responsibility for ensuring adequate controls over financial statements and reporting activities thus ensuring the accuracy of financial statements. Assess the adequacy of the provisions contained within the Act, indicating whether or not you believe requirements will improve the accuracy of financial statements and reporting. Provide support for your rationale.

• Given the requirements contained in the Act for CEO and CFOs to certify the adequacy of controls and financial statement accuracy, evaluate your comfort level with this requirement should you become a CFO of a publically traded company. Provide support for your rationale.

Discussion 2: "Financial Risk"

Respond to the following:

• Based on the company you researched in the e-Activity, assess the financial "red flags" that would have indicated that the company may be having financial difficulty providing suggestions related to how management should address these problems. Provide support for your rationale.

• Evaluate whether or not you are confident that the models used for predicting bankruptcy would have been adequate to predict the invariable bankruptcy of the company you researched. Provide evidence supporting your position.

E-Activity : Search the Internet databases for a publically traded company that recently filed for bankruptcy protection. Review the most recent financial information for the company and be prepared to discuss.