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