Effect of Unethical Behavior Article Analysis

Individual Assignment
Effect of Unethical behavior Article analysis
ACC/291


The Sarbanes-Oxley human action (SOX) was approved and passed in 2002 by Congress as an labour of preventing and also punishing corruption in corporations it also was created to limit the confidence of investors and the public.
Sox was created as a response to several scandals that caused far-flung government and public outrage against the corporations acting unethical. Fraudulent practices in accounting along with monetary reports, which were misleading, issued by some of the biggest giants in corporate America such as Enron, and WorldCom, caused investors to lose millions, and created irreparable damage in public trust.
Of all the SOX provisions sections 302 and 404, go far most of the attention. sectionalization 302 explains the responsibility of corporations on their financial reports (Verleun, 2011). Section 404 focus on assessments of management internal controls and requires management to be responsible for the maintenance and establishment of their internal controls. In increment section, 404 assess if the corporation internal control structure and their financial reporting procedures are effective (A Guide to the Sarbanes-Oxley map , 2004).




Section 303 of the act requires management certify reliability and accuracy of their financial statements. The act also requires in section 303 that the chief financial officer and CEO both sign off all bon ton financial statements. This is done so executives can be held responsible for any unethical activity on the financial statements (A Guide to the Sarbanes-Oxley Act , 2004).
SOX has effected financial statements in many behaviors. SOX asks independent firms to audit 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 produce more accurate and reliable financial statements. Through SOX, confidence of...If you want to get a secure essay, order it on our website: Orderessay



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