Entrepreneurial Crime and the Sarbanes-Oxley legislation Essay

Entrepreneurial Crime and the Sarbanes-Oxley legislation - Essay Example National organizations have loopholes are due to geographical and spatial complexities and the fact that different cultures and legal systems are brought together (Acs & Szerb, 2007). Trade involving international players should be ethical and regulated by law. In the spirit of the Sarbanes-Oxley legislation, auditing accuracy, financial accuracy and operations between such entities and individuals must be undertaken in a clear and plausible manner to avoid fraudulent engagement (Acs & Szerb, 2007). On the contrary, the Fumitake Nishi, a former employee of the Tile Shop Holdings, Inc., and brother-in-law of the Company CEO colluded with another Chinese company where he was a majority shareholder to indulge in multiple practices that were unethical and fraudulent (Anderson, 2014). Even though, the audit did not reveal any substantial embezzlement of company funds, the vendor relationships and sourcing practices were unethical and tantamount to a contravention of law. (Acs & Szerb, 200 7). Incentive compensation practices that the Beijing Pingxiu (BP) indulged in were detestable because they meddled in the company’s vendor practices by yielding operations that unorthodox and fraudulent (Anderson, 2014). Many funds were paid into the victim’s private bank account by the company to secure the vendor deals. The process was prohibited because it denied conventional operators business opportunity over the course of time they operated the business (Acs & Szerb, 2007).