20.08.2019-746 views -Impact of Unethical Behavior
Impact of Unethical Habit Article Evaluation
Over the past decade, numerous accounting scandals had been revealed. The impact of the dishonest behavior displayed in these scams caused the companies that were damaged to have a enormous financial loss for the organization as well as buyers, collapse, or become within a financial crisis (Ashe and Nealy, 2010).
The Sarbanes-Oxley Action of 2002 was exceeded " so that they can codify the ethical habit of corporations, their business owners, and their managementвЂќ (Hazel, 2010). One regulation set in place by Sarbanes-Oxley Take action, also known as SOX, was that company would be accountable for the information within the financial transactions. The economical statements need to be approved by the officer or officers of the company before the report will be filed. By signing off on the economical reports, the officers consent " that based on that officer's know-how, the claims contain zero fraudulent or perhaps misleading information, that the economical statements and also other financial information fairly present all material aspects of the financial conditions and results of procedure and that the placing your signature to officers include disclosed virtually any fraud, materials or not, to auditors and the taxation committeeвЂќ (Hazel, 2010). In 2002, Adelphia Communications Company had to file bankruptcy as a result of internal file corruption error. Before the bankruptcy, the company was " the fifth most significant cable firm in the Usa StatesвЂ¦вЂќ (Ashe and Nealy, 2010). Even though the CEO of Adelphia Communications Corporation authorized off around the financial statements, he was normally the one to devote fraud that caused the downfall of his personal corporation. According to NBC News, in June 20, 2005, David Rigas, the founder of Adelphia Sales and marketing communications Corporation, received 15 years in jail, which is among the harshest terms to receive since the Enron scandal in 2001. Conclusion
These scandals can easily be avoided using dual control. If two coworkers or officers examine the accounting...
References: Ashe, C., & Nealy, C. В (2010, November). В Ethical Standards and Accounting Techniques:
Still a location for Concern. В Journal of International Organization Disciplines, 5(1),
Hazels, B. (2010). Eight years after the truth is SOX doing work? A look at the Brooke
organization. Journal of Business Case Studies., 6(6), 19.
NBCNEWS. COM. В (2005). В Retrieved via http://www.msnbc.msn.com/id/8291040