Ethical and Legal Obligations Paper

896 Words May 27th, 2007 4 Pages
Businesses should make it imperative that its officers, directors and employees act at all times in an honest and ethical manner in connection with their service to that particular company. The principles of integrity and accountability are the cornerstone of that companies' success. This code of business conduct and ethics sets basic principles to guide all employees, officers, and directors of that particular company. All of the personnel and directors of that business should conduct themselves accordingly to avoid in fact and the appearance of improper behavior. Ethical business conduct calls for all companies and their personnel to assume responsibility for safeguarding and preserving that company's assets and resources in the …show more content…
Whereas, the Public Corporation Accounting Oversight Board (PCAOB) is a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports. And the Securities and Exchange Commission (SEC) is an agency authorized by the United States Congress to regulate the financial reporting practices of most public corporations. (http://www.nysscpa.org/prof_library/guide.htm#S) The laws and rules that govern the securities industry in the United States develop from a simple and straightforward concept that all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public, which provides a general pool of knowledge for all investors to use to judge for themselves if a company's securities are a good investment. Only through the steady flow of timely, comprehensive and accurate information can people make sound investment decisions. The Securities and Exchange Commission's Office of the Chief Accountant also works closely with domestic and international private-sector accounting and auditing

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