Several large-scale corporate scandals occurred in the early 2000’s involving financial reporting dishonesty and auditing fraud by corporate board members in multinational companies including Enron Corp., Xerox and WorldCom among others. In response to the losses to public investors, the US government through Senator Paul Sarbanes and House Representative Michael Oxley created the Sarbanes-Oxley Act of 2000 (SOX), which was aimed at bringing reform and enhancing the rules governing corporate reporting accountability, and auditing standards. These have been progressively adopted as the basis for subsequent amendments and development for new national and international GAAP standards. Macy’s Inc. is a publicly listed company operating a national wide retail business and as such is affected by the significant changes on financial reporting standards brought about by the act. The CEO must review the accounting policies currently in use to ensure compliance with the SOX act. (more…)