Unethical Behavior Article Analysis Paper

Submitted by: Submitted by

Views: 523

Words: 512

Pages: 3

Category: Business and Industry

Date Submitted: 09/24/2012 06:35 PM

Report This Essay

Unethical Behavior Article Analysis

The Sarbanes Oxley Law was approved as a consequence of lots of corporate scams. The goal of this law was to defend investors as well as to give them correct and dependable information, and to reveal all information which can impact an investor’s judgment. It was approved to revive the trust of investors and to attract them to invest.

The Sarbanes Oxley Law has influenced fiscal reports in a lot of ways. The law has required that impartial companies must audit the fiscal reports in which positions of the auditors must be rotated frequently, to ensure that scam cannot be concealed by the same auditor from year to year.

Section 303 of the law needs senior management to approve the precision as well as dependability of fiscal reports. The Sarbanes Oxley Act mandates that the fiscal reports of the organization should be signed off by the CEO as well as CFO of the organization. Executives will be held accountable for any kind of accounting irregularities by signing authentic records they are completely aware of the accounting likes as well as dislikes and they will be held responsible for any simple inept mistakes or intentional scam, careless breach of fiduciary duty, obvious carelessness, scheming to defraud, and so on. The SOX law has made CEO’s as well as CFO’s more accountable; therefore, they (CEO’s and CFO’s) should certify that they have analyzed the fiscal reports of the organization and that the reports are true to the best of their information.

Section 302 (management evaluation of disclosure controls) needs disclosure of material details to the Securities & Exchange Commission (SEC).

Section 401 (disclosures in regular reports) of the Sarbanes Oxley Act has made it compulsory for organizations to reveal their off balance sheet fiscal measures as opposed to earlier routines in which particular leases of assets might be left off the balance sheet without any disclosure in the fiscal reports. Section 401 says...