Ethical Decision Making Essay Example | Topics and Well Written Essays - 500 words

Ethical Decision Making - Essay ExampleWayman inform in 2011 that in order to combat accounting fraud, US Congress enacted financial reform through with(predicate) the Sarbanes-Oxley Act of 2002 (SOX), which held entities more accountable for their bookkeeping methodologies by requiring senior management to attest to the accuracy of the data provided on the financial statements, as well as mandate companies to establish internal systems of checks and balances to police those crunching the numbers. The formula lent more credibility and respect for the Generally Accepted Accounting Principles (GAAP) by reinforcing them as legal philosophy rather than mere ethical guidelines. GAAP is used to create parameters for corporate accountants and auditors when keeping records of transactions and rapprochement budgets. The rules place emphasis on revenue sources, itemized balance sheets, and numbers of outstanding shares. It is designed to create domineering transparency for investors and restore confidence in companies financial statements.