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Word Article Analysis Unethical Practices in Accounting

ACC/291 Principles of Accounting 2 Michaele Musters Instructor:

Word Article Analysis of Unethical Practices in Accounting

Ethical Practices and conducts maybe taken or act different by everyone, thus many times to identify unethical practices and behaviors, we have to see who is in control. It is essential to analyze what can be done, or thought what might be done against legally acceptable accounting principles and conducts. The Sarbanes-Oxley act of 2002, was enacted by The United States Congress to protect investors from fraudulent accounting practices, made by fraudulent executives in corporations. After the Scandal, the entire accounting world changed in many ways, that it created a new vision and ways of work. It sort of created a world of winds of anxiety for corporate executives and accountants. In the Sarbanes-Oxley act , there is a section call 302 that requires management to certify the accuracy of the reported financial statement. Then all corporations were forced to reform strictly to improve financial disclosures to prevent accounting frauds. After the Act, management introduced internal control in order to comply with all the Sarbanes-Oxley act requires for a corporations behavior. Today, all corporations are obligated to certify the company’s financial reports. They are also responsible and they must take full responsibility if there is a misleading, or fake accounting information. Corporations are establishing internal controls and composing new methods to ensure the accuracy and adequacy of those reports that are given. Unethical Practices and behavior in accounting, it is mostly a behavior of self-interest or greed. It is a behavior that falls into a lack of objectivity, independency, and professional judgment. An unethical practice, or behavior can be the…...

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