Share
Explore BrainMass

A potentially unethical accounting situation and SOX

What is an example of a potentially unethical accounting situation? Why is the situation unethical? How do ethics affect a company's financial results?

Do you think the Sarbanes-Oxley Act has made a difference in the ethical behavior of companies regarding their financial accounting? Why or why not?

Solution Preview

An example of a potentially unethical accounting situation would be when management asks an accountant to adjust certain entries. This is a common occurrence and request by management. Most of the time, this request is made based on ethical circumstances, such as correcting an error or adjusting for allowances and other conditions. However, this can be an unethical situation based on the intent. Management can also ask an accountant to adjust an entry because management is trying to manipulate numbers and this is very common towards the end of the quarter or just before year-end, if management is trying to have net income at or above a ...

Solution Summary

What is an example of a potentially unethical accounting situation? Why is the situation unethical? How do ethics affect a company's financial results?

Do you think the Sarbanes-Oxley Act has made a difference in the ethical behavior of companies regarding their financial accounting? Why or why not?

$2.19