Unethical Behavior Article Analysis

Effect of Unethical Behavior Article Analysis ACC/291 In the exist decade there have been several monumental bill scandals that have ca intaked the enforcement of sassy laws and reporting regulations for publicly traded companies. These laws, such(prenominal) as the Sarbanes-Oxley Act of 2002 (SOX), have been put in derriere to entertain the public investors from making ill-conceived investment ventures due(p) to untrue reporting by a corporation. This article outline provide explain what circumstances led to the creation of these new laws and merely why they really do protect investors from unethical invoice practices. Embezzlement as defined by http://dictionary.com is; to stimulate fraudulently to ones own use, as money or seat entrusted to ones c are (Dictionary.com, 2012). In the article titled slowly excrete to Understanding ENRON Scandal Summary, written by laws.com states that embezzlement, whitethorn be defined as the criminal exercise involving the flagitious and unethical attainment of monies and funding by employees; typically, cash in hand that are embezzled are intended for company use in lieu of personal use, as it pertains to the ENRON face directly. some(prenominal) the definition, embezzlement is illegal and unethical (Laws.com, 2012).

In the year 2000, eyebrows started being raised at the questionable footnotes deep down ENRONs monetary statements. The footnotes very briefly described transactions finished limited mapping entities that ENRON was not reporting within the existing fiscal statements because by law, only transactions t hrough SPEs of oer 3% were required to be re! ported. Because of ENRONs size and structure, the vocation within the SPEs was able to be undisclosed to the public. Behind the scenes, ENRON was pickings the weakness assets from previous acquisitions and exploitation them to trade with the special purpose entities to handle their bad debt and low leverage to acquire more financing. ENRON was using the SPEs to hedge the losses in previous investments,...If you deprivation to give rise a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper