Ethical And Legal Obligations Paper

Businesses should make it imperative that its officers, directors and employees act at all times in an honest and ethical manner in connection with their service to that particular company. The principles of integrity and accountability are the cornerstone of that companies' success. This code of business conduct and ethics sets basic principles to guide all employees, officers, and directors of that particular company. All of the personnel and directors of that business should conduct themselves accordingly to avoid in fact and the appearance of improper behavior. Ethical business conduct calls for all companies and their personnel to assume responsibility for safeguarding and preserving that company's assets and resources in the fulfillment of that company's charter, mission or objective. The code of business conduct and ethics serves to emphasize the commitment to ethics and compliance with the law; to set forth basic standards of ethical and legal behavior; to provide reporting mechanisms for known or suspected ethical or legal violations; and to help prevent and detect wrongdoing.

These principles require that employees, officers and directors of that business to act in a manner that will ensure an honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. The avoidance of conflicts of interest, including disclosure to an appropriate person or person identified in this code of any material transaction or relationship that reasonably could be expected to give rise to such a conflict. The full, fair, accurate, timely and understandable disclosure in reports and documents that, that business files with, or submits to, the Securities and Exchange Commission and in other public communications made by that company. The compliance with applicable governmental laws, rules and regulations and the prompt internal reporting of violations of this code to an appropriate person or persons.

The Financial Accounting Standards Board (FASB) is an independent, private, non-governmental authority for the establishment of accounting principles in the United States. Whereas, the Public Corporation Accounting Oversight Board (PCAOB) is a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports. And the Securities and Exchange Commission (SEC) is an agency authorized by the United States Congress to regulate the financial reporting practices of most public corporations. (http://www.nysscpa.org/prof_library/guide.htm#S) The laws and rules that govern the securities industry in the United States develop from a simple and straightforward concept that all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public, which provides a general pool of knowledge for all investors to use to judge for themselves if a company's securities are a good investment. Only through the steady flow of timely, comprehensive and accurate information can people make sound investment decisions.

The Securities and Exchange Commission's Office of the Chief Accountant also works closely with domestic and international private-sector accounting and auditing standards-setting