As the new corporate controller, you would like to reiterate the measures enacted by Congress in the Sarbanes-Oxley Act of 2002 to the accounting team. Research and summarize some of the provisions of the 2002 act that you would like to include in your presentation.
Discuss professional codes of ethics in accounting.© BrainMass Inc. brainmass.com October 16, 2018, 6:18 pm ad1c9bdddf
Here is a good summary for you regarding the Sarbanes Oxley Act of 2002:
The Sarbanes-Oxley Act of 2002, Pub. L. No. 107-204, 116 Stat. 745 (July 30, 2002), is a United States federal law also known as the Public Company Accounting Reform and Investor Protection Act of 2002 (and commonly called SOX or SarbOx).
The Act covers issues such as establishing a public company accounting oversight board, auditor independence, corporate responsibility and enhanced financial disclosure. It was designed to review the dated legislative audit requirements, and is considered one of the most significant changes to United States securities laws since the New Deal in the 1930s. The Act gives additional powers and responsibilities to the U.S. Securities and Exchange Commission.
The Act came in the wake of a series of corporate financial scandals, including those affecting Enron, Tyco International, and WorldCom (now MCI). Named after sponsors Senator Paul Sarbanes (D-Md.) and Representative Michael G. Oxley (R-Oh.), the Act was approved by the House by a vote of 423-3 and by the Senate 97-0.
The Sarbanes-Oxley Act's major provisions include:
* Certification of financial reports by chief executive officers and chief financial officers
* Ban on personal loans to any Executive Officer and Director
* Accelerated reporting of trades by insiders
* Prohibition on insider trades during pension fund blackout periods
* Public reporting of CEO and CFO ...
Professional codes of ethics in accounting
You have recently been hired by Jenny and Brad as corporate controller. After being on the job 6 months, you are given a raise and additional responsibilities in other commonly owned corporations. One of you responsibilities is being the check signer.
You notice that you are signing checks payable to Design Emporium (a local, pricey contemporary furniture store) and Stone and Marble (a kitchen and bath tile supplier of stone and granite). You are not aware of any major rehab or design projects that are going on at XYZ Corporation or any of its divisions. You mention these checks (which are for substantial amounts) to Jenny and Brad who indicate that the procedure is correct.
How do you handle this situation? Determine what may be going on in this situation. As the company's controller, what are your ethical responsibilities? What are the personal ramifications, if any?View Full Posting Details