Explore BrainMass

Explore BrainMass

    What ethical issues SOX has helped with and where improvemen

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 June 4, 2020, 2:26 am ad1c9bdddf
    https://brainmass.com/business/business-ethics/what-ethical-issues-sox-has-helped-with-and-where-improvemen-457812

    Solution Preview

    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 ...

    Solution Summary

    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?

    $2.19

    ADVERTISEMENT