ACC 260 Week 3 - DQ 1 - 7404

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3number
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Personally I believe that the Sarbanes-Oxley Act (SOX) is necessary to make sure that no unethical practices are being made. With this act it makes sure that the companies and their accountants are following the laws. These were put in place to ensure what happened with Enron and WorldCom does not take place again.  After what happened with these companies the government need to put out that there would be consequences for these unethical actions. With these in place I think it will either eliminate or reduce the unethical practices that were taking place. I feel that someone needs to be held accountable.

OR
Unfortunately, I do think that SOX is necessary.  I know that only a short majority of corporations have acted unethically, but with SOX in place, it gives executives, directors, and accountants a definitive of what is and is not expected from them.  Directors are now not able to also be in management, auditors have to have specific qualifications, more accurate financial statements are a must, accountants must follow GAAP guidelines, records cannot be falsified or destroyed if there is a federal investigation, and there are increased penalties for wrong doings.  Ultimately, SOX is necessary so that the board of directors of all companies keep in mind that everything they do should be for the public's best interest, not the companies.

Solution Description

Personally I believe that the Sarbanes-Oxley Act (SOX) is necessary to make sure that no unethical practices are being made. With this act it makes sure that the companies and their accountants are following the laws. These were put in place to ensure what happened with Enron and WorldCom does not take place