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This document was received by the Digital Commons on July 27, 2006 and posted on August 9, 2006.

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Article

Abstract

In the past five years the accounting industry has undergone major transformations. A wave of corporate scandals that began with Enron shook accounting's foundations, and led to passage of the Sarbanes Oxley Act of 2003. As the industry is absorbing and implementing the new requirements of the Sarbanes Oxley Act, it has yet another development on the horizon -- the pressure of convergence of accounting standards between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). Marie Kling, senior manager in PWC, summarizes the current situation: "The train heading towards global GAAP has left the station, while it won't reach its destination overnight, there's no turning back. Even a U.S.-based company with no international operations will be affected by the move towards convergence".1

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