Danielle Christman 24 Feb 11 10:43 AM MST Initial Post The Sarbanes Oxley Act holds companies accountable for correctly reporting financial data. This Act is in effect to prevent scandals, such as Enron, and restore confidence in the American economy and stock market. The Sarbanes Oxley Act affects both legal and ethical behavior. The act holds businesses accountable for financial decisions and supplies strict regulations to follow regarding financial items. The act also provides severe consequences for breaking such regulations. The Sarbanes Oxley Act can also increase integrity within businesses. The Sarbanes Oxley Act is a purely legal action but can increase ethics. For example, most people feel that financial honesty within a business is essential. It is unethical for a company to lie about its finances. This is also covered under the Sarbanes Oxley Act. The consequences for breaking the law provide more ethical decision making when discussing finances within an organization. If directors and officers of the American corporations were
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This note was uploaded on 07/16/2011 for the course ACCOUNTING 203 taught by Professor Jones during the Spring '11 term at Kaplan University.