Effect of Unethical Behavior Article Analysis

Effect of Unethical Behavior Article Analysis

ACC/291

May 6, 2013

Chris Brown

Effect of Unethical Behavior Article Analysis

Since the establishment of America, there has always been a collective need for wealth and expansion. The first settler’s dream was the unknown of the unexplored and claimable western frontier. As our country evolved, that dream changed from land to the natural resources it contains. Today, as corporations continue to thrive there is a need to uphold these corporations to the same standards each individual must adhere to. In 2002 president George W. Bush signed the Sarbanes-Oxley Act into law, in order to protect American citizens from the corporate travesty that became all too common in the days of stock market crashes, ponzi schemes, and major corporate injustices.

This bill has brought a sense of transparency and responsibility to the networks of public traded companies. Many of the problems with the previous laws that did not require corporations as well as the agencies assigned to monitor these businesses, to a code of conduct enforced by a third party. According to Chakarun’s Sarbanes-Oxley Act of 2002 article legislation created a board that “consists of five full time members, each serving a 5 year term … only two members can be certified public accountants.” (pg6,2002) Furthermore, these five board members represent the past, present, and future accounting principles that are beneficial when monitoring the financial statements, company audits, and governing bodies. In order to insure the highest level of integrity amongst the board members selected cannot hold any other position during the time that they serve on the board. This will deter favoritism and negligence regarding affiliated companies.

Transparency, reputable auditors, and honest companies are what this board is trying to achieve. However, the boards efforts can be limited success depends on the cooperation on the SEC and the individual state boards....