If I wanted to provide and analysis in which you identify situations that might lead to unethical practices and behavior in accounting. How would i examine the impact of the Sarbanes-Oxley Act on financial statements.© BrainMass Inc. brainmass.com July 20, 2018, 7:00 am ad1c9bdddf
Please see response attached, which is also presented below. I also attached two resources to draw on.
My understanding is that you are going to analyze an article of a specific company, and you would like to know some specific criteria to use in this process.
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1. If I wanted to provide an analysis in which you identify situations that might lead to unethical practices and behavior in accounting, how would I examine the impact of the Sarbanes-Oxley Act on financial statements? If I needed to ask a question regarding this article analysis, will you give an example?
A good place to start is using the objectives of the Sarbanes-Oxley Act (SOX) as criteria to analyze the impact on financial statements. The testimony is attached for further criteria to use in the analysis for each of the objectives. Some are perhaps more relevant than others, for example, the fourth objective is specific to financial statements. Second, look at secondary sources that list the specific expectations set out by these objectives.
Specifically, in a testimony concerning the impact of the Sarbanes-Oxley Act, the following objective were listed and expanded on. The speaker reports, "the goals of the Sarbanes-Oxley Act are far-reaching, and aim to restore investor confidence in and assure the integrity of our markets. Consequently, the reforms in the Act address nearly every aspect and actor in our nation's capital markets. The Act affects every reporting company, both domestic and foreign, as well as their officers and directors and other key participants in our capital markets." http://www.sec.gov/news/testimony/ts042105whd.htm According to the report, the principal objectives addressed in the Act can be grouped into the following themes:
· To strengthen enforcement of the federal securities laws;
· To strengthen and restore confidence in the auditing profession;
· To improve executive responsibility and the "tone at the top" at companies;
· To improve disclosure and financial reporting; and
· To improve the performance of ...
This solution discusses how to identify situations that might lead to unethical practices and behavior in accounting, and examines the impact of the Sarbanes-Oxley (SOX) Act on financial statements. Supplemented with additional information of SOX.