Explain the importance of ethics in accounting and financial decision making. Be sure to include a description of the 2002 Sarbanes-Oxley Act and its impact on accounting and financial decision making.© BrainMass Inc. brainmass.com March 4, 2021, 7:45 pm ad1c9bdddf
The Sarbanes-Oxley Act of 2002 was written in response to the large number of illegal accounting and financial procedures that created scandals at such companies as Enron and Arthur Anderson.
Ethical practices in accounting and financial decision making are important from a legal standpoint and a practical standpoint. As a legal issues, the governments (federal and state) along with some regional organizations have rules and laws that are applicable to the ways in which money are handled in a company. Laws, such as Sarbanes-Oxley, were created to protect those who invest and gain income from companies and those who do business with companies. They prevent unfair advantages and limit the amount of guess work or hiding of financial information from the public and ...
A discussion on ethics in financial reporting and how SOX is responsive to the need for more transparencies in reporting.