Effectiveness of Regulatory Reforms as Deterrent to Frauds and Unethical Actions

Introduction Ten years after the enactment of the Sarbanes-Oxley Act, people started talking about the deterrent effect on immoral and fraudulent activities. In this paper we analyze the effectiveness of regulatory reform and whether to utilize regulatory reform or legal revisions successfully or to utilize through ethnic education to prevent recurrence of fraud cases. The effectiveness of regulatory reform will analyze the deterrent effect of audit fraud and unethical behavior. Unauthorized auditing is a deliberate misunderstanding of profit.

Strong and effective regulations and legal environment play an important role in the prevention, detection and prevention of fraudulent financial reporting. In chapters 2 and 3, the Committee recommended several specific regulatory actions aimed at preventing and detecting fraudulent financial reporting. In addition, the regulatory and enforcement environment may and may be a more powerful deterrent. The European Commission is aware of the ongoing efforts to strengthen regulatory and legal environments and the effectiveness of past efforts. In fact, the Committee congratulated the US Securities and Exchange Commission on much of its contribution to the improvement of its financial fraud execution program and the financial reporting process.

The deterrents provided by regulators and law enforcement agencies are important to reduce the incidence of fraudulent financial reporting. Through its financial fraud execution program, the US Securities and Exchange Commission has greatly enhanced the company's understanding of this issue and the possibility of discovery and punishment. However, improvements can be made at the state and federal levels and should be done again. Educators are often not considered participants in the financial reporting process, but they play an important role to help mitigate the risk of fraudulent financial reporting. Education should prepare business and accounting students to identify factors that could lead to such fraud, as well as the ethical values ​​and good business practices necessary to prevent such fraud I can.