Ethical Article Analysis SOX

Ethical Article Analysis

University of Phoenix

Ethics has become the central focus of somatic ecesis and accounting oversight reform in recent years. The mop up of this ethical 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 over to! discusses the unethical behavior of corporate executives and accounting professionals that influenced the creation of SOX. The subprogram 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 impact on financial decision making. The ethical choices that corporate governance makes aim a direct affect on the financial approaching of the company and investor confidence. The article discusses the unethical choices made by worry in regard to expensing stock options and the use of off-balance sheet tactics. The authors let off that by not following the recommendations of the Financial Accounting Standards mature (FASB), corporate accountants were undermining the spirit and purpose of the financial statements; to represent truthfully the financial position of the company to the public.



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 was another ethical consideration discussed in the article. Miller and Bahnson (2005) ask that the supposedly 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: Orderessay



If you want to get a full essay, wisit our page: write my essay .