BUSINESS ADMINISTRATION
PRINCIPLES AND PRACTICE OF MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Knowles-Taylor Ethics Act of 1986
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Sarbanes-Oxley Act
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Public Law 2782 on Corporate Ethics
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Executive Order 27-82, “The Ethics Order”
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Detailed explanation-1: -The Sarbanes-Oxley Act of 2002 came in response to financial scandals in the early 2000s involving publicly traded companies such as Enron Corporation, Tyco International plc, and WorldCom.
Detailed explanation-2: -SOX 302 involves a survey and review of related reporting before top officers certify financial reporting, financial controls and fraud activity. SOX 404 includes processes and procedures for setup as well as risk management through monitoring and measuring to control risks associated with financial reporting.
Detailed explanation-3: -The Enron scandal resulted in a wave of new regulations and legislation designed to increase the accuracy of financial reporting for publicly traded companies. The Sarbanes-Oxley Act (2002) imposed harsh penalties for destroying, altering, or fabricating financial records.
Detailed explanation-4: -Under Section 406 of the Sarbanes–Oxley Act of 2002, publicly traded companies must disclose whether they have adopted a code of ethics for senior financial officers, applicable to the principal financial officer, principal accounting officer, or persons performing similar functions.