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Section 802 of the Sarbanes-Oxley Act outlines the penalties that may be imposed on any party that seeks to hinder investigative action through destroying, changing, defacing, concealing, damaging, or falsifying records. It sets a jail limit of 20 years, in addition to fines. It also sets a jail term of up to ten years for accountants who neglect to perform audits and accounting reviews as prescribed (LexisNexis, 2002, p.43).Section 401 of the act requires financial reports to be accurate and presented in a factual manner. It requires the reports to include "all material off-balance sheet liabilities, obligations or transactions." The section mandated a commission to determine whether adherence to GAAP's has any impact on the transparency and usefulness of financial reports and the impact of off-balance transactions on the transparency of the reports (LexisNexis, 2002, p.52).

Conclusion
The Enron scandal involved massive fraud in the financial reporting system, insider trading, apathy on the part of internal and external oversight bodies, and to a certain extent had a political angle to it. It therefore was a scandal brought about by weaknesses in the fiscal, accounting, and political structures and caused huge financial losses to investors, employees and creditors. One offshoot of the scandal was the enactment of the Sarbanes Oxley Act which introduced stricter corporate governance regulations to avert the recurrence of similar scandals in future.

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