Khristine Jackson Week 2 Homework July 19, 2014 The Sarbanes-Oxley Act of 2002 (SOX) was a direct output of the financial statement fraud that sank industry giants such as Enron and WorldCom. 1) What are the primary goals and tenets of SOX with respect to fraud? The primary goals and tenets of the Sarbanes-Oxley Act of 2002 (SOX) are to concentrate on improving the value of audits in an effort to remove fraud in order to keep the public’s attention as well as for the security of investors. In addition, SOX requests corporate management to be more accountable for both fraud prevention and detection. Similarly, corporate board is also more responsible for the occurrence of fraud with the company; under SOX, those who contribute in
Why? DQ 3: What are two platforms that business leaders can use to demonstrate and articulate their purpose, principles, and values? Discuss them. DQ 4: Do you think consumers hold companies responsible for their actions? Why is it important to have a corporate code of conduct?
Professor Darlene Green-Connor ACC 403 November 27, 2012 Sarbanes-Oxley Act The Sarbanes-Oxley Act was put in place by Congress in 2002 in response to the financial fraud committed by multiple corporations. The main objective of the Act was to restore faith in investors whom experienced financial losses due to the financial fraud committed by the corporations. The Sarbanes-Oxley Act, also known as SOX, contains many laws and regulations that must be followed by small and large companies. Some of the results of the SOX are: external auditors gained more independence in reviewing corporate financial statements for accuracy, the board of directors’ oversight role was increased, upper management is required to certify the accuracy of financial
Martha Stewart was convict on everything but what she went to insider trading. Many time money controls our ethical decision making skill. When thinking about poor American citizen who by her products. I think she took advantage of her fan by lying. Many moral and ethical dilemmas will curve our decision on what is right and wrong.
What is meant by the term lapping? How might an employee use lapping to conceal skimming? DQ 6: What are the three types of billing schemes? What type of proactive test is used to detect these schemes? ACC 375 Week 4 Individual Assignment Unethical Behavior Individual: Unethical Behavior
Sarbanes-Oxley: What It Means to the Marketplace. Journal Of Accountancy , 43-47. Deming, S. H. (2006). THE POTENT AND BROAD-RANGING IMPLICATIONS OF THE ACCOUNTING AND RECORD-KEEPING PROVISIONS OF THE FOREIGN CORRUPT PRACTICES ACT. Journal Of Criminal Law & Criminology , 465.
White collar crimes and Ponzi schemes seem to be happening more often than not in today’s business world. Our text describes White Collar Crimes as a violation committed by individuals and corporations of fraud, bribery, theft and conspiracy to commit (Melvin, S. P. Z Pg. 555(2011) and Ponzi as a fraudulent investment to make investors or profit holders to pay for their own return on their initial investment. Much like they think they are making money on a product that is being sold to customers, clients and consumers but actually, the people who put in initial investment money is just getting back the same thing they put in or other investors are paying for other investors shares and no one is making any profit. However, since the Sabine-Oxley Act came into play in the early 2000’s investors and shareholders have been protected by these types of schemes and avocations.
Ethicality of Accounting Activities The WorldCom case is an example of unethical behavior performed by a company by abusing accounting activities to reflect misleading financial information. In this case the main cause of this unethical behavior is greed and neglect by the executives that allowed and encouraged this behavior. On the other hand, WorldCom employee Cynthia Cooper is a prime example of ethical behavior that took place to uncover the wrong doing of individuals. Upon reading an article of a former financial analyst, Cynthia Copper’s mind was intrigued, an audit was conducted on capital spending. In the WorldCom and Cynthia Cooper case unethical behavior was evident in multiple departments and involved top key players that tried to cover up the fraud.
This account can be the target of fraud in the organization because it can be intentionally misstated and violate the accuracy assertions. Employees can easily misstate the amounts that a fundraising event actually cost the organization and pocket the discrepancies. The auditor should do analytical procedures and substantive tests in order to detect these misstatements. Additionally this account should be analyzed and compared to the bills the organization has on file. The final account that is on the balance sheet under the net assets and fund balances of the balance sheet would be the unrestricted net assets account.
Due to the company’s weak controls, the accountants did not take the time to review each invoice or study the signatures that were most definitely forged in an unmistakable font immediately recognizable to the person who had been forged. According to the 2010 Global Survey, 42.1 percent of perpetrators were employees, accounting for most of the perpetrators of that year. It was a close first to the upper management who held second at 41 percent. They state that more than 80 percent of frauds are committed by individuals in six departments including accounting, operations, sales, upper management, customer service and purchasing. Miano was involved with the operation of the project therefore enabling him to the opportunity of such easy access to committing the actual crime (ACFE,