|Ethical Decision Making: Corporate Governance, Accounting, and Finance|
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After reading this chapter, you will be able to:
- Describe the environment for corporate governance prior and subsequent to the Sarbanes-Oxley Act.
- Explain the role of accountants and other professionals as "gatekeepers."
- Describe how conflicts of interest can arise for business professionals.
- Outline the requirements of the Sarbanes-Oxley Act.
- Describe the COSO framework.
- Define the "control environment" and the means by which ethics and culture can impact that environment.
- Discuss the legal obligations of a member of a board of directors.
- Explain the ethical obligations of a member of a board of directors.
- Highlight conflicts of interest in financial markets and discuss the ways in which they may be alleviated.
- Describe conflicts of interest in governance created by excessive executive compensation.
- Define insider trading and evaluate its potential for unethical behavior.