Based on the requirements of the Sarbanes-Oxley Act and SEC reporting requirements for publicly traded companies, Write a four to five (4-5) page paper in which you:
- Evaluate the critical elements of accounting quality. Compare and contrast balance sheet quality with earnings quality. Explain why both are important to financial statement readers.
- Share one example of earnings management, explaining how it might be perpetrated and ways that investors might detect such behavior.
- Examine the role of the executive leadership team (e.g., CEO and CFO) in establishing an ethical environment and corporate culture that promotes high quality financial reporting.
- Assess the potential consequences for a publicly traded company when accounting quality is inadequate. Explain how management might minimize those consequences.
- Evaluate the requirements of the Sarbanes-Oxley Act regarding accounting quality, indicating whether the current provisions are adequate to protect stakeholders. Support your position.