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Provide one example of an accounting ethical violation (pre SOX) that would be illegal now, under...

Provide one example of an accounting ethical violation (pre SOX) that would be illegal now, under SOX Section 404 (Not Enron).  

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Answer #1

SOX section 404 ensures the accuracy and integrity of the financial reportings and disclosures of poblicly held company's. The section was enacted to protect the investors interest from corporate frauds.

There are many sections which addresses the earlier accounting violations and made them illegal. Apart from enron, another example is Worldcom accounting scandel. This was the accounting ethical violation as the revenues were being inflated, bogus entries were being made and other line-costs were not properly accounted.

These accounting violation would be illegal now as per SOX. SOX requires the management to assess the financial reportings and accounts. Management is also responsible for the integrity of the work of internal auditors.

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