The Violation of Sarbanes Oxley Act Assignment Paper (Case Study Sample)

Violation of Sarbanes-Oxley Act
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The enactment of the Sarbanes-Oxley Act was sparked by emerge of a series of high-profile financial scandal from giant companies such as WorldCom and Enron. The Act was aimed at protecting the general public and investors from fraudulent company’s actions by ensuring accurate disclosure corporate's operations. In the quest of re-establishing integrity in corporate organizations as well as confidence in the general public and investors, a few corporates have been prosecuted for violating the Act in the recent years. One of the corporations that have violated the Sarbanes-Oxley Act is QSGI. The CEO and CFO, Marc Sherman and Edward Cummings respectively, of QSGI Inc. mislead both the external auditors, the general public and investors by withholding vital information over inventory controls and improper accounting practices that rendered the companies’ books of accounting inaccurate (Gordon, 2014).
In the case involving QSGI, I would have recommended for the adoption of strict rules regarding corporates codes of ethics as well as extending whistleblower protections to company’s employees. If proper principle guidelines were in place to protect employees, any irregularities taking place in the companies, QSGI Inc. employees would have disclosed the lack of documentation of items in the inventory. On upholding code of ethics, I would have ensured that toughened consequences were put in place ensuring prison sentencing as well as financial penalties imposed on corporate personnel who exercising financial misconduct....