Tone at the Top

Authors

Dana R. Hermanson, Kennesaw State UniversityFollow
Daniel M. Ivancevich, University of North Carolina - WilmingtonFollow
Susan H. Ivancevich, University of North Carolina - WilmingtonFollow

Document Type

Article

Publication Date

11-2008

Abstract

The article focuses on Section 404 of the U.S. Sarbanes-Oxley Act which governs corporate auditing and accounting procedures.The section deals with senior management's responsibility for financial statements issued by any corporation by requiring an auditor to issue a negative report when any irregularities are detected. Senior management's response to the negative findings is of critical importance, as business ethics are founded on the tone set at the top of the corporation.