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The Sarbanes-Oxley Act of 2002 (SOX) has emphasized the significance of ethical behavior and codes of conduct. Describe the costs and advantages of the ethical environment. If a poor ethical environment results in costs to an organization, what are they? On the other hand, what are the advantages of a good ethical environment? Flexibility, timeliness and forward looking are stated to be the prominent trait of modern management accounting, while standardization and consistency describe financial accounting. Describe why the focus on these two accounting systems distinct.

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