{"id":6151,"date":"2023-05-11T13:58:04","date_gmt":"2023-05-11T13:58:04","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/?post_type=chapter&#038;p=6151"},"modified":"2025-05-28T14:29:47","modified_gmt":"2025-05-28T14:29:47","slug":"apply-it-16-3-ethics-in-accounting","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-16-3-ethics-in-accounting\/","title":{"raw":"Apply It 16.3: Ethics in Accounting","rendered":"Apply It 16.3: Ethics in Accounting"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li>Understand how unethical practices affect the accounting profession<\/li>\r\n\t<li>Understand how the Sarbanes-Oxley Act affects accounting practices<\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>The Sarbanes-Oxley Act (SOX)<\/h2>\r\n<p>Gary Gensler served as the Chair of the U.S. Securities and Exchange Commission from 2021 to 2025. In this video, he reflects on how SOX was created and the effects it has had since it became law over 20 years ago.<\/p>\r\n<section class=\"textbox watchIt\">\r\n<p>[embed]https:\/\/www.youtube.com\/watch?v=eJChWPaOMJo[\/embed]<\/p>\r\n<p class=\"p1\">You can view the\u00a0<a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/WhatDidtheSarbanesOxleyActdoOfficeHourswithGa.html\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">transcript for \u201cWhat Did the Sarbanes-Oxley Act do? | Office Hours with Gary Gensler\u201d here (opens in new window).<\/span><\/a><\/p>\r\n<\/section>\r\n<p>Has SOX been successful?<br \/>\r\n[reveal-answer q=\"133426\"]Click to Show Sample Answer[\/reveal-answer]<br \/>\r\n[hidden-answer a=\"133426\"]Whether SOX has been effective depends on who you ask. Some say it has been very helpful in reducing fraud, improving the reliability of financial reporting by public companies, and providing more transparency and accountability to shareholders and stakeholders. However, others believe that SOX places a significant burden on businesses, especially smaller ones, due to the high costs of compliance. These costs include expenses for auditing, technology, and personnel to meet the SOX requirements. Critics also argue that SOX focuses on compliance rather than encouraging ethical behavior.[\/hidden-answer]<\/p>\r\n<section class=\"textbox linkToLearning\">If you have an interest in finance, check out other <a href=\"https:\/\/youtube.com\/playlist?list=PLrB8PjaXSV6vWl2NrPjghfvCehCrT7Kjo\">Office Hours with Gary Gensler videos<\/a> on topics such as crypto platforms, short selling, shell companies, and more. These videos are short and packed with information, ranging in length from two to four minutes.<\/section>\r\n<p>&nbsp;<\/p>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li>Understand how unethical practices affect the accounting profession<\/li>\n<li>Understand how the Sarbanes-Oxley Act affects accounting practices<\/li>\n<\/ul>\n<\/section>\n<h2>The Sarbanes-Oxley Act (SOX)<\/h2>\n<p>Gary Gensler served as the Chair of the U.S. Securities and Exchange Commission from 2021 to 2025. In this video, he reflects on how SOX was created and the effects it has had since it became law over 20 years ago.<\/p>\n<section class=\"textbox watchIt\">\n<p><iframe loading=\"lazy\" id=\"oembed-1\" title=\"What Did the Sarbanes-Oxley Act do? | Office Hours with Gary Gensler\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/eJChWPaOMJo?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p class=\"p1\">You can view the\u00a0<a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/WhatDidtheSarbanesOxleyActdoOfficeHourswithGa.html\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">transcript for \u201cWhat Did the Sarbanes-Oxley Act do? | Office Hours with Gary Gensler\u201d here (opens in new window).<\/span><\/a><\/p>\n<\/section>\n<p>Has SOX been successful?<\/p>\n<div class=\"qa-wrapper\" style=\"display: block\"><button class=\"show-answer show-answer-button collapsed\" data-target=\"q133426\">Click to Show Sample Answer<\/button><\/p>\n<div id=\"q133426\" class=\"hidden-answer\" style=\"display: none\">Whether SOX has been effective depends on who you ask. Some say it has been very helpful in reducing fraud, improving the reliability of financial reporting by public companies, and providing more transparency and accountability to shareholders and stakeholders. However, others believe that SOX places a significant burden on businesses, especially smaller ones, due to the high costs of compliance. These costs include expenses for auditing, technology, and personnel to meet the SOX requirements. Critics also argue that SOX focuses on compliance rather than encouraging ethical behavior.<\/div>\n<\/div>\n<section class=\"textbox linkToLearning\">If you have an interest in finance, check out other <a href=\"https:\/\/youtube.com\/playlist?list=PLrB8PjaXSV6vWl2NrPjghfvCehCrT7Kjo\">Office Hours with Gary Gensler videos<\/a> on topics such as crypto platforms, short selling, shell companies, and more. These videos are short and packed with information, ranging in length from two to four minutes.<\/section>\n<p>&nbsp;<\/p>\n","protected":false},"author":21,"menu_order":16,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"What Did the Sarbanes-Oxley Act do? | Office Hours with Gary Gensler\",\"author\":\"\",\"organization\":\" U.S. Securities and Exchange Commission\",\"url\":\"https:\/\/www.youtube.com\/watch?v=eJChWPaOMJo\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube License\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":3231,"module-header":"apply_it","content_attributions":[{"type":"copyrighted_video","description":"What Did the Sarbanes-Oxley Act do? | Office Hours with Gary Gensler","author":"","organization":" U.S. Securities and Exchange Commission","url":"https:\/\/www.youtube.com\/watch?v=eJChWPaOMJo","project":"","license":"arr","license_terms":"Standard YouTube License"}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6151"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":11,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6151\/revisions"}],"predecessor-version":[{"id":9759,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6151\/revisions\/9759"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/3231"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6151\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=6151"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=6151"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=6151"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=6151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}