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This Case is stricly hypothyetical: any resemblance to real persons, companies, or situations is coincidental - Coursework Example

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Soumey Corporation has failed to comply with the Sarbanes Oxley Act specifically in the areas of health and safety, employee retention, and internal audit and report. For instance, the toxic spill out that occurred several times in the company have not been reported to any…
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This Case is stricly hypothyetical: any resemblance to real persons, companies, or situations is coincidental
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This Case is stricly hypothyetical: any resemblance to real persons, companies, or situations is coincidental

Download file to see previous pages... Moreover, there are enough indications of the prevalence of inappropriate incentive system and some sorts of unfair favoritism. In addition, serious flaws have been found with the HR management as it shows unethical discrimination to Spanish workers by assigning them to all night shifts.
2. Obviously, Jerry has a moral duty to report the felony to the outside authority i.e. Securities and Exchange Commission (SEC). If he does not report, he too will be becoming the part of a conspiracy that has been going on within the organization. Since the audit flaws are not merely inadvertent occurrence, it is difficult for Jerry to fix the organizational inconsistency. Apparently, except Jerry all other members of the board are aware of the immoral practices going on within the various areas of organization. Absence of proper documentation, according to the Sarbanes-Oxley Act is a punishable crime. Changing or falsifying records with objective to impede legal investigation has been identified by Jerry. According to SOX sec.404, management should conduct an evaluation that is sufficient to provide it with a reasonable basis for its annual assessment, and moreover if the evaluation process identifies material weakness that should be disclosed in the management’s annual report with a statement that Internal Control over Financial Reporting (ICFR) is insufficient (Bainbridge, 2007).
3. The make-up of the board of directors of Soumey is not at all ethical. They have been highly influenced by racial feelings and chauvinism. To illustrate, their comment on the Spanish workers is beyond any limits of organizational ethics and legal compliance. Alan states “these people know how to work and keep quite…” In the same way, when Jerry says about the issues he overheard John responds that since the company is going into a recession, the board has to cut a few corners to meet the dividends up to the market expectations. It shows how feeble is their moral reasoning ...Download file to see next pagesRead More
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