Sarbanes-Oxley Act 2002

Abstract

This paper explores the topics of, Managerial and Financial Accounting. Also discussing the importance of financial reports, such as the public reporting of financial reports and illustrates the basic financial reports for financial accounting and managerial accounting. This paper will explain the Sarbanes-Oxley Act of 2002 and how it relates to financial and managerial accounting; as well as two corporations that enforce the Sarbanes-Oxley Act of 2002. Lastly, this paper will explore accounting job opportunities and the salaries in financial accounting and manufacturing environment.

INTRODUCTION TO MANAGERIAL ACCOUNTING

Managerial Accounting

In my own words, the definition of managerial accounting is the analyzing the information of business for organizational goals. Financial accounting in my own definition is accounting and the reporting of business transactions on a smaller scale, such as smaller businesses, as well as checking the financial statements on periodic basics. According to Accounting for Management.com, “Financial accounting reports are prepared for the use of external parties such as shareholders and creditors, whereas managerial accounting reports are prepared for managers inside the organization.” Another difference is according to Investopedia,

“Investopedia explains Financial Accounting, as the key difference between financial and managerial accounting is that financial accounting is aimed at providing information to parties outside the organization, whereas managerial accounting information is aimed at helping managers within the organization make decisions.”

The Objective of public and private reporting of financial statements is to,

“- Provide information about obligations and economic resources so that interested parties will be able to judge the capacity of the company to thrive and grow in a competitive business environment.

- Supply the necessary data regarding the profitability and success of...