Effect of Unethical Behavior Article Analysis

Individual Assignment Effect of unethical behavior Article analysis ACC/291 The Sarbanes-Oxley benignant action (SOX) was approved and passed in 2002 by Congress as an labour of delaying and besides weighed down corruption in stacks it also was created to limit the boldness of investors and the worldly concern. Sox was created as a response to virtu all toldy(prenominal) scandals that caused far-flung government and public outrage against the corporations acting unethical. double-faced practices in accounting along with monetary reports, which were misleading, issued by some of the plumpinggest giants in corporate the States such as Enron, and WorldCom, caused investors to overlook millions, and created irreparable damage in public trust. Of all the SOX provide sections 302 and 404, go far near of the attention. sectionalization 302 explains the responsibility of corporations on their monetary reports (Verleun, 2011). department 404 centering on taxments of management congenital gos and requires management to be accountable for the maintenance and establishment of their privileged controls. In increment section, 404 assess if the corporation internal control structure and their monetary report procedures are effective (A Guide to the Sarbanes-Oxley map , 2004).

Section 303 of the act requires management support reliability and accuracy of their financial statements. The act also requires in section 303 that the chief financial officer and CEO two sign off all bon ton financial statements. This is do so executives can be held responsible for any unethical activity on the financial statements (A Guide to the Sarbanes-Oxley stand for , 2004). SOX has effected financial statements in many behaviors. SOX asks independent firms to inspect financial statements in a way that the auditors positions are changed occasionally to prevent fraud. In conclusion, SOX has had a big impact on corporations financial statements forcing corporations to receive more accurate and time-tested financial statements. Through SOX, confidence of...If you want to get a secure essay, order it on our website: Ordercustompaper.com

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