What ethical issues SOX has helped with and where improvement is still necessary? Since the inception of Sarbanes Oxley, do you feel fraud is still as bad as it was before?© BrainMass Inc. brainmass.com March 4, 2021, 11:50 pm ad1c9bdddf
SOX has created a managerial stewardship, where companies must be held responsible for their financial statements. This affects not only the actual preparation of the financial statements and all related disclosures itself, but also requires that managers use ethical decision-making in recording accounting transactions, which then move through the accounting cycle, with the final step being the preparation of the company's financial statements. SOX is a cure for ethical ignorance, due to the scandals that happened at Enron and WorldCom. Through SOX, management must provide an ethical core structure inside of their organization, which leads to management taking into account the ethical components of their decisions that are related to financial decision-making, which ultimately affect the company's financial ...
What ethical issues SOX has helped with and where improvement is still necessary? Since the inception of Sarbanes Oxley, do you feel fraud is still as bad as it was before?