When one sees headlines of stories such as Enron, HealthSound, WorldCom scandals, and other large corporations employees under investigation for securities fraud and more, its brings to mind the integrity of big businesses today. You might even question who is responsible for the regulations, and who enforces them. As we see influential people convicted in the news such as WorldCom's CEO Bernard Ebbers ( Diana p.24) and Martha Stewart it brings to mind the accountability and ethic of the officers of major corporation. In "Corporate Executives And Auditors Try on Sox', article from Business Credit magazine discuss the impact of Sarbanes-Oxley Act (SOX) of 2002 has on large pubic Corporation today.
Perhaps it is time for a change. The publicity caused by Enron, Aldelphia Communications, HealthSouth and WorldCom, prompted congress to respond with SOX, as its answer to help ensure accountability to the boardroom, and restore investors confidence that the reporting of earning are based upon valid numbers and the board is upholding the best interest of the shareholders.
As with any other Securities and Exchange Commission (SEC) regulation violations SOX carries civil as well as criminal penalties. (Diana p.24). SOX also require publicly-held companies to have internal code of ethics, whistleblower protection and preventive, document-destruction measures. However, since the inception of SOX companies are finding it difficult to comply with, because it imposes financial and personnel burdens on their staff. This are article discuss several cases of accounting and securities fraud with emphasis of the impact it has on ethics in accounting today.
Upon comparing my present employer to concepts in this article, the first thing that was observed the vast differences between the two corporations observed. Heald College is a non-profit organization that is not public traded, therefore; it would not have to adhere to the...