Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 19

In a 2005 poll sponsored by the Wall Street Journal Online and Harris Interactive, these organizations asked 2,061 U.S. investors whether the regulations and costs of Sarbanes-Oxley were too strict. Overall, 55 percent called the rules too lenient and that punishment for poor corporate governance should be directed at certain individuals rather than the company as a whole. Are you surprised by these results? Why or why not?

Step 1 of 2

Ethics:

Ethics is the set of some moral values and principal that differentiate right and wrong morally.

Audit:

The audit is the process of checking the financial statements of a company `to ensure that it is 100% authentic and free from any kind of bias or fraud.

Fraud:

Fraud means the willingly wrong representation of something, to hide some material facts from outsiders or mislead them about some facts.

Corporate governance:

It is a set of rules, laws, and regulations under which business organizations operate. It helps the organization to work smoothly. It ensures transparency between management and shareholders.