the legal ethical and technological conerns paper

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Grand Canyon University: BUS 340 03/28/2014 The Legal, Ethical, and Technological Concerns Paper For as long as businesses have existed, so has accounting. With time, it has become more complicated and detailed, but it is still a process of keeping financial accounts in order. Through accounting, or financial reporting, a system is set up to keep track of, maintain and audit the financial proceedings. Because accounting and financial reporting of a business is so important for its accuracy and in general, a lot of ethical, technological and legal concerns are involved. In this paper, we will look identify and explore the concerns of each of these. What does it mean to be…show more content…
The most common type of fraud within businesses is accounting and financial reporting fraud. The U.S. Securities and Exchange Commission (SEC) has made enormous efforts to establish laws and regulations by which accounting professionals and companies have to abide by to prevent fraudulent reporting and any sort of unethical activity. Many are very well aware of the Enron scandal which shook eth American business industry very much. A lot of investors were hurt and millions of dollars were lost. Enron’s CEO Jeffrey Skilling ended up being sentenced, even though his sentence was later reduced to 14 years of prison, (Berman, The Huffington Post). Because of the Enron scandal and few other similar ones, former President George W. Bush signed the Sarbanes-Oxley Act of 2002 into law. This act impacts all CPAs as well as CPA firms that conduct public company auditing. Attorneys, investment bankers, dealers, financial analysts and brokers are affected as well. The Sarbanes-Oxley Act of 2002 now requires the New Public Company Accounting Oversight Board (PCAOB) to retain a seven year record, cooperate with CPA groups, complete annual inspection, investigations may be completed at any time, registration with the board is mandatory, certain sanctions for violations may be put into place, etc. Without a doubt, there are a

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