Chapter 1, Problem 10Q

To determine

Concept introduction:

Sarbanes-Oxley Act or SOX was introduced in 2002 by U.S. government after several accounting scams like Enron and WorldCom. The Act defines the responsibilities of the board of director of a public company and adds criminal liabilities for wrongful acts of the management and board of directors.

To indicate:

The effect of the Sarbanes-Oxley Act of 2002 on the Manager’s responsibility of ethical and reporting environment