Business Research Ethics We are going to looking at the Enron Scandal to see how this company’s unethical behavior brought it to an end, to see who were the injured parties; to see how this company’s unethical behavior affected the company and society, and to see if the unethical behavior could have been avoided or resolved? According to the New York Times (2002), in early 2000, Enron, the natural gas pipeline company turned online phenomenon, held a daylong conference in Huston for Wall
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Unethical Practices and Behavior in Accounting Name Institution Course Tutor Date Unethical Practices and Behavior in Accounting The Sarbanes-Oxley (SOX) Act of 2002 was passed by the congress to protect investors from fraudulent accounting activities by organizations (Hart, 2009). Investors depend on the information that they receive from accountants to make investment decisions and hence if incorrect information is provided, the investors make inaccurate decisions, which could be costly
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procedures that will protect an organization’s assets. When using internal controls it puts reliability of the financial data on an organization. It improves the operations of an organization and follows the laws and regulations like those in the Sarbanes-Oxley Act of
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that are part of the Sarbanes-Oxley Act. QUESTION 2) WHAT DOES CARMICHAEL SEE AS THE UNDERLYING MISSION OF THE PCAOB? Carmichael views the underlying mission of the PCAOB to be the restoration of the public’s confidence in the auditor’s reports and findings. Accounting scandals, involving companies like Enron and WorldCom, prompted Congress to adopt the Sarbanes-Oxley Act as a means to establish control over accounting and auditing functions. A main focus of Sarbanes-Oxley was the establishment
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As a public company, LJB Company will be held accountable and responsible for certain internal controls as established by the Sarbanes-Oxley Act. These controls involve all aspects of operations, finances and personnel. The SOX internal control standards apply to all public companies listed on the U.S. exchanges- New York Stock Exchange and NASDAQ. Internal controls consist of methods and measures utilized by a company to ensure their assets are protected; there is a structured reliability in their
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preserved in original format, and cannot be altered at any time. The Sarbanes-Oxley Act of 2002 was passed through the senate and the house in response to the scandals of Enron and World Com. In The Sarbanes-Oxley Act of 2002 this is where the document retention policy directly falls on. Almost all documents are created on computers, and so a good retention policy can be made because of that reason. The main reason why The Sarbanes-Oxley Act of 2002 was passed so quickly was to protect shareholders from
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Sarbanes Oxley Act has had many positive impacts on American businesses, but has also had its share of criticism. As a result of the implementation of the Sarbanes Oxley Act, firms now produce financial information that is more transparent and holds some form of accountability. One of the greatest benefits of the Sarbanes Oxley Act is that investors are more confident because they now have access to more accurate financial statements and are able to assess the financial strength and stability of
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“Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences” (Krantz, 2002, para. 1). In the early 2000s, Congress passed the Sarbanes-Oxley Act of 2002 (SOX) due to the numerous corporate scandals explosions, Enron Corporation was one of the most notable companies to crash. Basically, in 1990s Enron and numbers of publicly-traded companies increase their stock prices by deceptive
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com/books/9781118233634/id/P7-62] As a part of my evaluation of LJB, there are key new regulations that have to be followed and implemented in concordance with the plans to go public. As a public company that will issue stock, LJB will have to comply with the Sarbanes-Oxley Act, (SOX), this is an enhancement of corporate responsibility relative to financial reporting issues. Specifically,
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personal gain. The effects of unethical behavior can result in ruining the company’s reputation and creditability with internal and external investors. However, because of unethical behaviors from accountants and largely owned companies the Sarbanes-Oxley Act has been
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