I. Introduction to Audited Financial Information and Related Litigation

II. The Impact of SOX on Financial Information and Its Reliability

A. Significant Improvements in Accountability from SOX

B. SOX' Significant Ripple Effects

III. Investigations, Inspections, and Audits of Financial Information

A. Internal Investigations of Financial Reporting and D isclosure

B. SEC's Informal Inquiries and Enforcement Division Investigations

C. PCAOB's Inspections and Investigations of CPAs

1. PCAOB's Inspections of CPA Firms

2. PCAOB's Investigations, Disciplinary Processes, and Sanctions

D. Parallel Investigations: IRS Audits, DOJ Investigations, and Others

1. IRS Audits of Corporate Financial Information .

2. Other Parallel Investigations

E. Pressures for Corporate Cooperation in Investigations

IV. Reforms Needed for Effective and Fair Investigations of Financial Information

A. Strengthening Corporate Governance and the "Tone at the Top"

B. Improving Comprehension of Financial Reporting and Disclosure Rules

C. Implementing Internal Controls and Auditor "404" Work More Affordably

D. Assisting Enforcement through Enhancements, Efficiency, and Education

V . Conclusions