Author Question: Why do you think The Body Shop conducted its own audit in addition to Hanson's independent audit? ... (Read 72 times)

EAugust · **on:** Aug 11, 2018

Why do you think The Body Shop conducted its own audit in addition to Hanson's independent audit?

What will be an ideal response?

Question 2

This case occurred in 1998. As described in Chapter 15: Public Relations and the Law, what federal legislation now exists that might have prevented the Sunbeam scandal?

What will be an ideal response?

Kimmy · **Reply #1 on:** Aug 11, 2018

Answer to Question 1

Several reasons come to mind. An independent verification of Hanson's audit
seems a prudent action to have taken. By moving ahead with its own audit, The
Body Shop was aggressively enforcing the high ethical standards it had set for
itself. It also made it possible for the company to move more quickly to correct
any deficiencies its internal audit may have found.

Answer to Question 2

Publicly held companies in the United States are now bound by Regulation Fair
Disclosure, which eliminated selective disclosure of information, and the
Sarbanes-Oxley Act, which holds top corporate executives personally responsible
for company financial statements.