Sarbaneys Oaxley Act SOX for Accounting Errors Order Instructions: PLEASE SEE ATTACHMENT SAMPLE ANSWER.
Sarbaney’s Oaxley Act commonly referred to as SOX is a law that was legislated in the year 2002.
The aim of the law was to ensure that the public and all shareholders are protected in case errors in accounting happened. The law further sought to cushion the public against fraud by ensuring that companies are compelled to make disclosure thereby increasing accuracy. The legislation is administered by the Commission on Exchange Commission and Securities in America.
Although some people may view the legislation to be unethical, it is ethical considering that it seeks to serve the interests of the public. Holt (2010) notes that the issue of ethics arises because the legislation compels organizations to keep open their accounts for scrutiny. This is seen to be against the ethical and professional code of accounting. However, the very intention for which the Act came into force is indicative that there is no violation on ethics.
Sarbaneys Oaxley Act SOX for Accounting Errors and Experience and Practice
Practice and experience have proven that regulations do not always work in the maintenance of an ethical environment. Rather, it is the culture that the people have cultivated and created over time. Even in the presence of stringent legislations intended to enforce ethics, it is only if the people have embraced a culture of ethics that the same will be released (Miller, 2010). People and the culture they have created remain instrumental in ensuring that ethics are observed and maintained. In this case, it is not very much the nature of the legislation. Rather, it is how much the people in the system have inculcated in them a culture of observing ethics. The SOX legislation is brilliant in enforcing ethics but the will power of the people also counts for much.
Sarbaneys Oaxley Act SOX for Accounting Errors References
Holt M, (2010). The Sarbanese-Oxley Act: Costs, benefits and business impacts. London: Butterworth- Heinemann.
Miller, R. (2010). Student guide to the Sarbanese-Oxley Act. New York: Prentice Hall.
