Section 302 Of The Sarbanes-Oxley Act

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Ethics in Accounting Elizabeth Rabe Acc/291 Monday, January 21, 2013 Eric Oechsner There is absolutely no room for unethical behavior in the professional world (Jacobson, Rick “Unethical Behavior in the Workplace” (Nov, 2007). Reasons for unethical behavior include greed, self-interest narcissism, confusion, poor morals, and ignorance. An accountant may embezzle funds from his or her employer for financial gain. Or perhaps the CFO of a publicly traded corporation chooses to prepare financial statements and make those statements appear as though the company is performing much better than it actually is, because he or she wants their stock portfolio to increase. Corporate pressure can be a problem. An accountant may feel pressured from…show more content…
The Act was designed to promote honest and ethical conduct; full and accurate disclosure in periodic reports; and compliance with applicable government rules and regulations. The sections in the act that impact corporate responsibility address education and knowledge, accountability, control, fraud, obligations, and truth in accountability. Section 302 of the Sarbanes-Oxley Act introduces the requirement for several certifications regarding periodic financial reports. The signing officers must certify that they have reviewed and approved the report, and that they have evaluated the company's internal accounting controls within the preceding 90 days, and reported honestly on their findings. 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. The guidelines are logical and directive to those who should be held

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