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Managerial Accounting And The Sarbanes-Oxley Act Of 2002

287 Words2 Pages
The chief accountant (CA) of an organization is charged with understanding both financial and managerial accounting, due to the opportunities for fraud within a corporation, when focusing on one or the other. Gaining a clear understanding of both will allow the CA to make precise and informative decisions because their knowledge is versed in both concepts. First, the Sarbanes-Oxley Act of 2002, holds the chief executive officer (CEO) and chief financial officer (CFO) responsible for the establishment and enforcement of a strong set of internal controls, in which are to be followed by all members of the company (Edmonds, Tsay, & Olds, 2011, p. 22 ). In doing so, these controls hold the CFO accountable for data being reported on financial statements,
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