Unethical Accounting and the Impact of Sarbanes Oxley
Not what you're looking for?
Prepare an article analysis in which you identify situations that might lead to unethical practices and behavior in accounting. Then, examine the impact of the Sarbanes-Oxley Act on financial statements. Cite references if there are any.
Purchase this Solution
Solution Summary
This essay-style solution discusses situations that might lead to unethical accounting practices and the impact of Sarbanes Oxley upon financial statements in 550 words.
Solution Preview
Several situations can occur that can lead to unethical accounting practices, but none more so than the way in which a manager is compensated. A poorly-structured bonus plan can not only open the door to abuse, in some circumstances it actually encourages the behavior. In an environment where minor offenses are overlooked, managers will often find creative ways to increase their pay often at the expense of fellow coworkers and even shareholders.
For example, suppose the production manager at a manufacturing facility is given a bonus based upon the overall gross profit of his division. This is a common pay arrangement in many small companies as it is relatively easy to compute and is, in ethical hands, a relatively good tool to measure a manager's performance. However, in practice, the unethical manager seeing that he is bound to underperform this month might begin ...
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Motivation
This tests some key elements of major motivation theories.