ACCT 001 Lecture Notes - Lecture 31: British Rail Class 31, Financial Statement, Securities Fraud
18 Sep 2020
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Document Summary
New evidence emerging in the early 2000s demonstrated that more than a few business executives and managers had not fully embraced high ethical standards. To address a loss of confidence in financial reporting and corporate ethics, the u. s. The law made securities fraud a criminal offense and stiffened penalties for corporate fraud. It created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting and to develop greater transparency in financial reports to investors and other interested parties. It required top executives to sign off on their firm"s financial reports, and risk fines and long jail sentences if they misrepresented their company"s financial position. It also required company executives to disclose stock sales immediately, and prohibited companies from giving loans to top managers. A 2004 amendment required that a business"s governing authority be well informed about its ethics program with respect to content, implementation, and effectiveness.
