There are many different scenarios that can lead to unethical behavior in accounting. For example, if a CEO makes 200,000 grand in one year but falsifies his records to indicate that he only made 100,000 then that is unethical. Many corporations find loopholes to try to squeeze through because they do not want to have to pay taxes or other fees. Embezzlement is also another type of unethical behavior; this is what led Enron to destruction. There are rules in place to prevent these types of disingenuous activities; The Sarbanes Oxley Act of 2002 is a very notable act that was passed to prevent unethical behavior in the financial profession.
The Sarbanes Oxley Act of 2002 was put in place to protect investors and gain trust from investors by …show more content…
There are much more requirements than there were before the act was passes, these requirements make it nearly impossible for a corporation to falsify documents, or to try to blame others. CEO’s and CFO’s are now able to be held accountable for their actions in unethical behavior if they are found to be involved. Knowing that there are more in depth questions asked, more attestations that have to be made, and more consequences definitely leaves less room for employees or CEO’s to try to get away with unethical behavior. Of course, not everyone follows the rules because there was still financial trouble back in 2008 but I do believe that if the rules were enforced every time to every person that it would have an even bigger impact. Making exceptions to the rules and provisions only hinders the process in my opinion. It is the auditors and accountants job to go into a corporation and make sure all the pieces to the puzzle fit, and if there are oversights on their part, then the act will always seem to be ineffective. To continue to implement change, auditors and accountants must always follow the provisions laid out by The Sarbanes Oxley
The Sarbanes Oxley Act of 2002 was put in place to protect investors and gain trust from investors by …show more content…
There are much more requirements than there were before the act was passes, these requirements make it nearly impossible for a corporation to falsify documents, or to try to blame others. CEO’s and CFO’s are now able to be held accountable for their actions in unethical behavior if they are found to be involved. Knowing that there are more in depth questions asked, more attestations that have to be made, and more consequences definitely leaves less room for employees or CEO’s to try to get away with unethical behavior. Of course, not everyone follows the rules because there was still financial trouble back in 2008 but I do believe that if the rules were enforced every time to every person that it would have an even bigger impact. Making exceptions to the rules and provisions only hinders the process in my opinion. It is the auditors and accountants job to go into a corporation and make sure all the pieces to the puzzle fit, and if there are oversights on their part, then the act will always seem to be ineffective. To continue to implement change, auditors and accountants must always follow the provisions laid out by The Sarbanes Oxley