Acc291 Wk.5 Ind. Ass. Behavior Artical
Effect of Unethical Behavior Article Analysis
Terra Postelle
ACC/291
January 08, 2013
Bennie Clark
Effect of Unethical Behavior Article Analysis
The effects of the Sarbanes-Oxley Act of 2002 on financial statements are general guidelines as to how the information is gathered, calculated and presented to clients while enforcing their accuracy and legitimacy. Companies such as Enron, Tyco, Global Crossing, and WorldCom are just a few examples of corrupt business cultures, practices, and greed that made the need for new laws to arise in order to prevent future business taking the same direction. These companies and companies like them manipulated, lied, embezzled, and sometimes flat out stole from their clients plummeted into financial hardship and in some cases the economy as well.
There will always be companies such as, The Brooke Corporation, who will purposefully manipulate financial data or find new loop holes through the SOX guidelines and laws to make a bigger profit. Corporations and businesses such as these do not look at the ethics behind their decisions, but their business’s financial well-being and their own pockets. In the article, Eight Years After The Fact Is SOX Working? A Look At Brooke Corporation, Brooke Corporation would sell insurance and related services through franchises. When an “Agent” would purchase a franchise Brooke Corporation would allow the use of their business model, registered trade name, access to the products of insurance company suppliers, advertising center, facility support and processing center, the use of the internet based information system, provide an office location, equipment and support staff, training and advanced funds for at least the first six months of operation, and agents with all necessary insurance company appointment and help the establish customers. All this for $150,000 - $165,000 and a 10% broker fee included in the sale price, and they could elect to purchase a Start-Up Assistance program at no
Terra Postelle
ACC/291
January 08, 2013
Bennie Clark
Effect of Unethical Behavior Article Analysis
The effects of the Sarbanes-Oxley Act of 2002 on financial statements are general guidelines as to how the information is gathered, calculated and presented to clients while enforcing their accuracy and legitimacy. Companies such as Enron, Tyco, Global Crossing, and WorldCom are just a few examples of corrupt business cultures, practices, and greed that made the need for new laws to arise in order to prevent future business taking the same direction. These companies and companies like them manipulated, lied, embezzled, and sometimes flat out stole from their clients plummeted into financial hardship and in some cases the economy as well.
There will always be companies such as, The Brooke Corporation, who will purposefully manipulate financial data or find new loop holes through the SOX guidelines and laws to make a bigger profit. Corporations and businesses such as these do not look at the ethics behind their decisions, but their business’s financial well-being and their own pockets. In the article, Eight Years After The Fact Is SOX Working? A Look At Brooke Corporation, Brooke Corporation would sell insurance and related services through franchises. When an “Agent” would purchase a franchise Brooke Corporation would allow the use of their business model, registered trade name, access to the products of insurance company suppliers, advertising center, facility support and processing center, the use of the internet based information system, provide an office location, equipment and support staff, training and advanced funds for at least the first six months of operation, and agents with all necessary insurance company appointment and help the establish customers. All this for $150,000 - $165,000 and a 10% broker fee included in the sale price, and they could elect to purchase a Start-Up Assistance program at no
Citations: Hazels, B. (2010). Eight years after the fact is SOX working? A look at the brooke corporation. Journal of Business Case Studies, 6(6), 19-29. Retrieved from http://search.proquest.com/docview/818384459?accountid=35812