Internal Controls are extremely important with any accounting system, especially a computerized system. It is a...

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Accounting

Internal Controls are extremely important with any accountingsystem, especially a computerized system. It is a huge part ofcreating and maintaining an accurate set of accounting records. I’msure you all have heard of The Enron, WorldCom, Global Crossings,Tyco or Arthur Anderson scandals. These scandals cost theirstockholders billions of dollars. Any company that trades stockpublicly is required to file their financial statements and otherimportant financial information with the SEC (The SecuritiesExchange Commission). Obviously, false information was filed fromthese companies and as a result, The Sarbanes Oxley Act of 2002 waspassed into law.
Describe this act?
Discuss what it means for stockholders?
Explain the ramifications for accountants?
Provide some ethical solutions that would prevent employees fromputting companies in this type of situation.

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Sarbanes oxley act is a fedral act which was introduced to protect the interest of shareholders employees and public from account ting error fraudulent financial practices Importance of sox act for stockholders Since sarbanes oxley act requires filing of various documents with sec and See Answer

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Internal Controls are extremely important with any accountingsystem, especially a computerized system. It is a huge part ofcreating and maintaining an accurate set of accounting records. I’msure you all have heard of The Enron, WorldCom, Global Crossings,Tyco or Arthur Anderson scandals. These scandals cost theirstockholders billions of dollars. Any company that trades stockpublicly is required to file their financial statements and otherimportant financial information with the SEC (The SecuritiesExchange Commission). Obviously, false information was filed fromthese companies and as a result, The Sarbanes Oxley Act of 2002 waspassed into law.Describe this act?Discuss what it means for stockholders?Explain the ramifications for accountants?Provide some ethical solutions that would prevent employees fromputting companies in this type of situation.