Business Ethics Chapter 04: Video Case - Sarbanes-Oxley

Sarbanes-Oxley:

All of the options are true.

Congress passed Sarbanes-Oxley into law as a response to:

Financial scandals and corporate fraud

How did complying with Sarbanes-Oxley help Viper Motorcycle Company, according to its CEO?

It made the company more attractive to investors

What is controversial about Protivity, a new accounting firm that specializes in helping businesses comply with Sarbanes-Oxley?

Protivity was created by employees of accounting firm Arthur Andersen, a firm that took part in the Enron scandal that led to Sarbanes-Oxley

Which aspect of Sarbanes-Oxley has created severe difficulties for businesses?

The cost and difficulties of compliance

What ethical concept does Sarbanes-Oxley promote and institutionalize?

Transparency

According to Sarbanes-Oxley, accounting firms that provide consulting services to businesses are prohibited from providing auditing services. This prevents:

Conflicts of interest

An unexpected outcome of Sarbanes-Oxley has been:

It has led to a boom of new accounting businesses

How does Sarbanes-Oxley attempt to improve business ethics?

By legally requiring companies to certify the truth of their statements to investors