Account Management: Sarbanes Oxley Act of 2002

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Most jobs these days will have some sort of connection with ethics. People are held to higher standards especially when it comes to having a job with more responsibilities or heavy interactions with others. Many people are taught ethics in school about what is not only right and wrong but also what is morally “right” and “wrong”. When it comes to a profession in accounting you have even more standards and rules to work by. The Institute of Management Accountants has continued to distribute an updated guidance on ethical issues you could have while practicing. After a slew of unethical choices made by many wealthy, or so thought, companies the Sarbanes Oxley Act of 2002 was put into action to keep this from happening again.
From the beginning of grade school all the way through college you are constantly put in situations where you must make choices one always more ethical then the other. Even with ethics one choice may not be as clear cut as you would like but after careful consideration you can usually find which one is the better choice. Ethic means a set of moral principles, esp. ones relating to or affirming a specified group, field, or form of conduct. Moral means a person's standards of behavior or beliefs concerning what is and is not acceptable for them to do. With ethics being defined using the word moral, you can already see where conflicts can arise when people are making “ethical” decisions. People can start making decisions depending on themselves and situations they have encountered instead of looking at the issue as what it is. A strong ethical culture that is practiced with in someone’s business is important because it not only affects the employees but also the way the public looks are your company as a...

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...dards as set out by the Institute of Management Accountants. Your decision should not only follow the standards of competence, but also confidentiality, integrity, and credibility. With the scandals and downfalls that came to the public’s eyes you can see how easy it is to fall into unethical practices. Thanks to these companies faults in 2002 the Sarbanes Oxley Act was passed and this piece of legislation was put into act to help you in your profession. Many of the questionable choices that these companies were doing have been laid out and the consequences that follow are also explained. With a whole piece of legislation being set into action to explain the ethical and unethical decisions of a public company it shows how important this topic is, and as long as you follow all the guidelines out there us accountants you should have minimal conflicts with this.

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