Compliance Issue Essay

Open, View, and/or
Download this Document

Total Length: 668 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

Ethical Dilemma on Enforcing the Sarbanes-Oxley Act

As the controller of a medium-size manufacturing company, I have developed an effective accounting and internal control systems. This has been achieved through keeping the staffs updated on changes in the accounting industry and diligently updating the systems to comply with new accounting standards. As a result, the company has been regularly complimented for thorough procedures by the external auditor who has been reviewing its books for more than a decade. However, the enactment of the Sarbanes-Oxley Act has initiated several changes and extra work for the firm because it focuses on testing internal control systems. Based on their interpretation, the auditors have suggested costly improvements to the systems and expanded the scope of the audit engagement, which contributes to increased fees. The partner in charge has stated that it is better to make mistakes in implementation rather than risk non-compliance since the new legislation is open to interpretation.

This situation has contributed to an ethical dilemma based on the belief that the company is in compliance with the legislation and may not need the costly improvements.

Stuck Writing Your "Compliance Issue" Essay?

View All Our Example Compliance Issue Essay

Have A Custom Example Essay Written

The ethical issue in this situation is whether to change auditors because the current ones are too strict in enforcing the Sarbanes-Oxley Act.

According to John & Marano (2007), the enactment of this legislation has resulted in numerous compliance challenges for both small and mid-sized public firms. The challenges in compliance are brought by the disproportionate and huge regulatory burden associated with the Sarbanes-Oxley Act. Given the increased vulnerability to prosecution and shareholder lawsuits, external auditors usually conduct extensive testing of every internal standard and procedure to protect themselves from such instances. Notably, the extensive testing is carried out regardless of its probable significant impact on the accuracy of financial statements.

Therefore, changing auditors because of the strictness of the current one may not be a suitable course of action to address the situation. This is mainly because most of the existing auditors employ stringent measures when carrying out their….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


Related Essays

Mortgage Servicer Compliance with CFPB Regulations

these regulations help in ensuring that mortgage servicers carry out their operations in a proper and legal manner. This paper examines compliance issues facing mortgage servicers in two different scenarios based on CFPB regulation and federal consumer right law. Rachel’s Case Based on the information provided in Rachel’s case, the major issue is the unavailability of information on payment history for her loan before it was transferred to LandX. The federal regulation that was violated in this scenario is regulation regarding transfers. In this case, Rachel’s loan was transferred to LandX as part of loan modification process. However, as stipulated by the Consumer Financial Protection Bureau (2016), transfer of loans during… Continue Reading...

Tim's Coffee Shop Business Simulation

by providing references that support your ideas.Address: the vision statement, short term and long-term goals, federal and state compliance issues, and social responsibility considerations. He may or may not be following some of these. HR Analysis Summary Provide a detailed summary of what you observed in this particular area of the business. Describe any strengths and weaknesses. Look in the files in the back office at all of the employees. Are they valuable? Do Tims employees need more training? What other issues did you notice in the employee files? Action Items Based on your analysis, detail for Tim what needs to be done and when to improve this… Continue Reading...

sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Compliance Issue" (2014, September 29) Retrieved June 4, 2026, from
https://www.aceyourpaper.com/essays/compliance-issue-192221

Latest MLA Format (8th edition)

Copy Reference
"Compliance Issue" 29 September 2014. Web.4 June. 2026. <
https://www.aceyourpaper.com/essays/compliance-issue-192221>

Latest Chicago Format (16th edition)

Copy Reference
"Compliance Issue", 29 September 2014, Accessed.4 June. 2026,
https://www.aceyourpaper.com/essays/compliance-issue-192221
   

Open, View, and/or
Download this Document
order custom essay example