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The Sarbanes Oxley Act on the Ethical Management of IT - Coursework Example

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"The Sarbanes Oxley Act on the Ethical Management of IT" paper focuses on the most important regulation in terms of generating adequate and fraud-free corporate financial reporting. But it is equally evident that Sarbanes-Oxley could be implemented with the help of IT.  …
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The Sarbanes Oxley Act on the Ethical Management of IT
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Download file to see previous pages The new system of regulation for fraud-free corporate reporting has been put to operate as per the Sarbanes-Oxley Act which was passed in 2002 against corporate financial reporters such as self-regulating accountants and organizational accounting departments. Sarbanes-Oxley Act is implementing some of the guidelines under the authorities of Congress and other accounting institutions. But it seems that Sarbanes-Oxley Act, together with other bodies such as Public Company Accounting Oversight Board (PCAOC), Securities and Exchange Commission (SEC), etc are unable to provide justifications for the stoppage of such unscrupulous activities (Engel, Hayes, & Wang, 2005). It had been observed that organizations may somehow avert future scandals regarding audits and accounting reports.

Sarbanes-Oxley Act works under some rules which impose fines and severe punishments in case of frauds noted in corporate financial reporting. Sarbanes-Oxley Act is operating with the strict guidelines of gauging frauds in audits and financial reporting which in return is positive and highly beneficial for the investors as they can get away with the upheaval of the wrong financial reporting. Prison sentence for 20 years has been announced been as per the strict guidelines of the act in case of fraudulent statements in the financial reports (Garneau & Shahid, 2009). After the action taken by the Sarbanes-Oxley Act, a lot of companies regulated their corporate financial reporting with the help of new technology. A number of companies affirmed that documents that had been previously altered for fraud purposes are now balanced.

The need of the hour for organizations is to follow a pattern of the ethical corporate structure. It is the first recommendation for the fraud-free corporate financial reporting that companies initiate programs for upgrading ethical values within different departments of operations.  ...Download file to see next pagesRead More
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