Ethical Article Analysis SOX

Ethical Article Analysis University of Phoenix Ethics has fashion the central focus of somatic ecesis and accounting unmindfulness reform in recent years. The mop up of this good revival is the passing of the Sarbanes-Oxley Act of 2002 (SOX). The article by miller and Bahnson titled You say that you dont like SOX? Youre not chew oer to! discusses the unethical behavior of corporate executives and accounting professionals that influenced the creation of SOX. The affair of this paper is to discuss the blow ethics has on monetary decision making and the ethical considerations involved by analyzing the points presented in the article. Ethics has a profound pretend on fiscal decision making. The ethical choices that corporate governance makes aim a direct affect on the financial approaching of the come with and investor confidence. The article discusses the unethical choices made by worry in regard to expensing stock options and the use of shoot-balance sheet t actics. The authors let off that by not following the recommendations of the Financial Accounting Standards get (FASB), corporate accountants were undermining the spirit and purpose of the financial statements; to represent truth salutaryy the financial position of the company to the humans.

With the publics trust and confidence in corporate financial reporting eroded, companies will have a difficult time convincing investors to place their money into the corporations stocks. Ethics, or a lack of such, can have an enormous impact on the decisions of investors. Lack of completely separate and supreme auditors w as other ethical consideration discussed in! the article. Miller and Bahnson (2005) ask that the purportedly independent auditing firms became more concerned with pleasing the corporate executives and began circumventing their ethical code, all the while missing the point that admittedly clients [were] investors and the public (p.13). Auditing firms began to perform more non-auditing services, like... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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