ACC 573 Week 2 DQ 2
valued and reported so that information is reliable for users . Provide support for your rationale .
· Assess the ethical requirements as outlined in the Sarbanes-Oxley Act , indicating whether or not you believe the requirements are adequate to ensure integrity in financial accounting and reporting activities . Suggest improvements that may be needed while providing support for your rationale .
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ACC 573 Week 2 DQ 2
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· In today ’ s business environment where publicly traded companies feel pressure to meet short-term earnings expectations , management may be tempted to “ manage earnings ”. Assess how a financial statement user may be able to detect managed earnings when reviewing the firm ’ s balance sheet , income statement , and cash-flow statement . Indicate how a potential investor might interpret these “ red-flags ”. Provide support for your rationale .
· Assess how the Sarbanes-Oxley Act addresses the concern of corporate “ managed earnings ”, indicating whether or not you believe the requirements within the Act are sufficient to minimize these concerns . Provide support for your rationale .
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