An article written by Jagg Xaxx, a Doctor of Philosophy from the University of Manchester, attempts to make sense of the causes of underhanded behavior in operation accounting. Doctor, Xaxx's approach to the is definitely topic is definitely one used by lots of, understand a complex subject by simply simplifying it down to it is base factors. How do we recognize situations that might lead to scams and how can we prevent that? First a knowledge of why someone may well commit fraudulence is need. The best way to recognize when a scenario might progress unethical behavior in accounting is to identify the reasons why persons would choose to be unethical in their accounting procedures. Once you know why a person would act in a particular way a better knowledge of potential harmful situations becomes as just as noticing and research individual personnel. The biggest reason in back of lapses accounting ethics must be greed. It seems silly that such a complex topic because accounting ethics can be boiled down to one expression but " some people enjoy having lots of money and will break the law to acquire itвЂќ (Xaxx, В 2010). The word " make the booksвЂќ comes to mind with this situation. In accounting individuals have the opportunity to modify numbers in the books and take additional money for themselves; this really is basically robbing the company using a paper and pen rather than gun and mask. With this type of fraud the potential for taking a lot of money may become very tempting to even the most dedicated employee. Sarbanes-Oxley act of 2002 has received a major influence on accounting in the usa. By demanding top level management to sign the accounting transactions they can be held accountable for any fraud in the statement. The Sarbanes-Oxley take action has also provides for much harsher punishments for anyone caught assigning fraud. This act has also had a serious effect on most financial claims. The target from the Sarbanes-Oxley work was to make corporate accounting more clear so everybody one can find what a business is doing. The side effect this...
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