The Legal, Ethical, and Ethical and Technological Concerns

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The Legal, Ethical, and Technological Concerns Paper As technology progresses it can truly change how a business operates in terms of accounting and financial reporting. Online software has become a widely used system by many businesses around the globe. Financial reporting is essential to any business especially when seeking for potential investors or stakeholders. The reason being is because a financial report contains all of the records of how a business is performing financial wise. Likewise there are purposes of securities regulations and the main one is to disclose any schemes. Mallor, Barnes, Bowers & Langvardt (2012) stated the following: In the early 1930s Congress passed two major statues, which are the hub of federal securities regulation in the United States today. These two statues, the Securities Act of 1933 and the Securities Exchange Act of 1934 have three basic purposes 1. To require the disclosure of meaningful information about a security and its issuer to allow investors to make intelligent investment decisions. 2. To impose liability on those persons who make inadequate and erroneous disclosure of information. 3. To regulate insiders, professional sellers of securities, securities exchange, and other self-regulatory securities organizations (pg. 1140). Additionally, today’s society is filled with legal and ethical concerns that surround numerous individuals and their responsibility is to keep all information private and accurate. Furthermore, accounting and financial reporting is the most significant function of a business and entails a great sense of legal, ethical and technological concern. Legal Concerns The securities Act of 1933 has basic objectives, to require investors to receive financial and o... ... middle of paper ... ...d to raise concern on who they are hiring to take charge on the whole aspect of accounting and financial reporting. Conclusion In conclusion, the importance of maintaining a safe and private work environment is the key to a successful business. When dealing with accounting and financial reporting the company must be honest, ethical and concise to avoid any type of legal consequences and bad reputation. Works Cited Federal Securities Laws. (n.d.). SEC.gov. Retrieved April 26, 2014, from https://www.sec.gov/about/laws.shtml Mallor, J. P., Barnes, A. J., Bowers, L. T., & Langvardt, A. W. (2013). Business law: The ethical,global and e-ommerce environment (15th ed.). Boston: McGraw-Hill/Irwin. Sarbanes-Oxley Act Of 2002 (SOX) Definition Investopedia. (n.d.). Investopedia. Retrieved April 26, 2014, from http://www.investopedia.com/terms/s/sarbanesoxleyact.asp

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