In part, many corporate scandals center on misleading or inaccurate financial statements (Enron, WorldComm, Global Crossing, and Tycho are examples from 2002 mentioned in Chapter 1). Also, the financial crisis in 2007-08 period included corporate failures in the financial sector and enormous losses for investors.

1.How do firms manage to mislead investors?

2.Do you feel reforms already enacted (like Sarbanes-Oxley or more recent reforms after the financial crisis) have or will make a major difference explain why?

3. Do you think additional legal or regulatory actions are needed?

Your response should be 300 words or less and include sources cited in apa.