Ac 504 : Ethical Issues

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Unit 6 Assignment AC 504 – Ethical Issues in Business & Accounting June 23, 2015 Kumar Jadoo Abstract The Sarbanes-Oxley Act of 2002, which is also known as the Public Company Accounting and Investor Protection Act or the Corporate and Auditing Accountability and Responsibility Act and then more commonly called Sarbanes-Oxley, or SOX, is a United States federal law that set new or enhanced standards for all of the United States public company boards, management and public accounting firms. The SOX act contains eleven different title, or sections that range from additional corporate board responsibilities to criminal penalties, requires the Securities and Exchange Commission to implement rulings on the requirements to comply with the…show more content…
 Corporate Responsibility – contains eight sections and mandate senior executives take individual responsibility and liability for the accuracy and completeness of corporate financial reports.  Enhanced Financial Disclosures – consists of nine sections that describe the enhanced reporting requirements for financial transactions, including off-balance-sheet transactions, pro-forma figures and corporate officers’ stock transactions.  Analyst Conflicts of Interest – consists of only one section which includes defines the codes of conduct for securities analysts and requires disclosure of knowable conflicts of interest.  Commission Resources and Authority – consists of four sections which defines various practices aimed at restoring investor confidence in securities analysts, and the SEC’s authority to punish securities professionals who deviate from standard practices.  Studies and Reports – consists of five sections and requires the Comptroller General and the SEC to perform various studies as well as report their findings.  Corporate and Criminal Fraud Accountability Act of 2002 – consists of seven sections that describes the stiff criminal penalties associated with being guilty of manipulating, destroying or altering of financial records or otherwise interfering with investigations.  White Collar Crime Penalty Enhancement Act

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