JACKSON HEWITT TAX SERVICES AND ITS UNETICAL DILEMMAS Introduction Jackson Hewitt Tax Company is known for preparing taxes and getting customers bigger refunds. While the company stands behind its reputation and does a great service to those in need. Research shows that there is some evidence of unethical behavior from the company. Fee increases, fraudulent tax returns, employees pay cut, bonuses not being paid to employees to name a few. A closer look at the organizational behavior of Jackson Hewitt is needed.
As people as a whole have proven time and time again, there are rules and laws and there are people whom break those rules and laws for personal gain. As long as people choose to be dishonest and unethical in their businesses and personal choices when it comes to finances, there will be financial fraud and investors will suffer financial
Large-scale bankruptcies and corporate frauds resulted in the Sarbanes-Oxley (SOX) Act. Which provision of SOX do you think will have the most profound effect on improving the quality of financial reporting and
The Sarbanes-Oxley is the act of 2002. This act consist of originals names of the Investors Confident Act, Public Company Accounting Reform, Corporate Accountability Act, Investors Protection Act of 2002, and many more. The main purpose of these Acts is to focus on legislation. This Act is to support the public with support, and to maintain at a high level of confidence in the financial reports of public companies. SOX were introduced to be known with its purpose.
How the Sarbanes-Oxley Act Relates to Internal Control After the scandal of Enron and WorldCom, the Sarbanes-Oxley Act of 2002 was enacted. These scandals caused investors to lose billions and rocked Wallstreet. What is the Sarbanes-Oxley Act and how does it affect internal control? In this report, we will look at its history, Section 404, and its relationship to internal control. The Sarbanes-Oxley Act, also known as SOX, was enacted into law on July 30, 2002; which was named after its sponsors U.S.
Under Section 404 of the act, these findings must detail any uncovered control deficiencies or instances of employee fraud, and must also be reviewed and attested by the registered accounting firm. The authors of the report must certify that the report does not contain any false information, misleading statements or significant omissions, and that the financial statements and information included in the report accurately represent the financial condition of the company. Under Section 401 of the act, this representation must account for both balance and off-balance sheet debts, obligations and transactions in order to facilitate maximum transparency for shareholders (Nikolas, Daniel. Nd Effects of the Sarbanes-Oxley Act). The act serves as a guideline and governs what an accountant should and should not do when reporting financial flows.
Leslie Fay Companies 1.) Clearly Inventories was a big item to address along with Accounts Receivable. Sales and gross profit were stellar in a time of industry unease. Furthermore Accounts Payable decreases as a percentage of current liabilities while Inventories increase as a percentage of current assets. This is an implausible trend on the Balance sheet that BDO should have investigated further, especially with Leslie Fay’s outstanding Income Statement.
Sarbanes-Oxley Act Sarbanes-Oxley is a United States federal law, which is also known as the public company accounting reform and investors protection act and corporate and auditing accountability and responsibility act. Sarbox or Sox are shorter names given to the company. Paul Sarbanes (US Senator) and Michael G. Oxley (US Representative) are the ones who support this act. This act is intended to protect investors by improving the precision and consistency of corporate disclosures made pursuant to the security law. It is also there to strengthen audit committees and to create responsibilities for publicity traded corporations, accounting firms and regulatory agencies.
The book Dumb Money, written by Daniel Gross describes the era of “Dumb Money” and even “Dumber Money” causing the credit bubble that occurred prior to the 2008 financial crisis. Gross explains that it wasn’t “skeezy money managers” that caused the recent financial tsunami, but rather Ph.D. economists, central bankers, CEO’s and investment bankers. Gross reveals that the four factors that precipitated the Dumb Money era were low decreasing interest rates, increasing asset prices (real estate in particular), plentiful borrowers, and a strong debt market. He explains that due to the “shadow banking system” American financial culture was too fixated on short-term gains rather than long-term gains and encouraged excessive borrowing, lending, and trading. Gross criticizes
According to Clement (2006) unethical behavior in business is a growing concern. “In recent years, the business news in the United States has been rife with reports of misconduct by American corporations. The most widely publicized of these cases may be the accounting fraud at Enron and what was then MCI WorldCom; however, less trumpeted incidents of misconduct are troubling, as well. Examples of such lesser known events include consumer fraud at Prudential Financial, discriminatory practices at Morgan Stanley, and antitrust activity at DuPont. Given the recent misbehavior in the U.S. business world, a reasonable person might wonder just how unethical American business really is.