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Sarbanes-Oxley Act (SOX)

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Does Sarbanes-Oxley Act (SOX) ensure an ethical tone or just the financial reporting? Can they be separated?

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Solution Summary

In terms of ethical standards, this solution explains if SOX ensures an ethical tone or just the financial reporting, and if they be can be separated in the process. Supplemented with an informative article on the role of governance in an "unethical" organization.

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1. Does SOX ensure an ethical tone or just the financial reporting (financials)? Can they be separated?

Sarbanes-Oxley Act (SOX) does not assure an ethical tone, but it does propose ethical (and legal) behavior for compliance by companies in terms of honesty, accuracy and integrity in financial reporting, in protection of the company and shareholders. In a ...

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