Financial Reporting Timeline The creation of: 1. Committee on Accounting Procedures Role - With the recent increase in members, the SEC delegated the responsibility of issuing pronouncements on accounting principles to the Committee. The SEC worked with the Committee on Accounting Procedures to develop standards for accounting and financial reporting and issued 51 Accounting Research Bulletins (ARBs) over its lifetime. In 1949, they updated 42 of their original ARBs and codified them.
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of recommendation | 5 | 6 | conclusion | 6 | case study 2 solution Dear president of LJB Company, * If the LJB Company should decide to become a publicly traded company, a few internal controls should be implemented to comply with the Sarbanes-Oxley Act (SOX). Management will need to provide periodic quarterly reports to evaluate the effectiveness and reliability of LJB’s internal controls over financial reporting procedures. Management should certify the accuracy and fairness of presentation
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Excello Telecommunications: Profit at a Price There are moments in life that can forever define and potentially change not only an individual but an entire corporation as well. With the fiscal year of 2010 coming to a close, Terry Reed the operating CFO of Excello Telecommunications faced such a dilemma. For the first time, Excello was on track to finish out the year below anticipated financial goals, which would resonate throughout the company and its’ stock. This presented Excello with the
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In the wake of economic scandal and the downturn of America’s economy, the Sarbanes-Oxley act and the Dodd-Frank act have attempted to reinforce and uphold the single most important virtue that our capitalist society so desperately depends on, trust. Many of the following names are familiar to us all by now, and for the wrong reasons: Enron, Lehman Brothers, World-Com, and Tyco. So what have SOX and DOD actually accomplished for our capitalist society? What can they actually do to help avert such
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1. What are the pressures that lead executives and managers to “cook the books”? There were many pressures that lead managers at World Com to “cook the books”. They all stemmed for the need to reach their goal to be the No. 1 stock on Wall Street, even while the company wasn’t doing very well. Being No. 1 on Wall Street meant they focused on revenue growth which would increase their company’s market value. World Com started facing struggles as, “Industry conditions began to deteriorate in 2000
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Assignment #1- Sarbanes-Oxley Act Charleen Herriott Instructor Partica Strayer University June 5, 2011 Sarbanes-Oxley Act In the wake of corporate scandals involving World Com, Enron, and other large companies accused of defrauding shareholders, Congress passed the Sarbanes-Oxley Act of 2002. The stated purposes of SOX is to protect investors by improving the accuracy and reliability of corporate disclosures, and much of the law seeks to further this goal by imposing strict rules for audits
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Integrity; Environment, Health and Safety; Customer; Accountability; Excellence; People; and Profitability. Alcoa had implemented a global ethics and compliance program, and the focus on health and safety was interwoven through the company’s program. This program included all the basic elements specified in the U.S Federal Sentencing Guidelines and Sarbanes-Oxley Act. The company made it clear that the program’s tools must be understandable by all employees, must support the company’s strong value
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people will do anything to propel themselves into financial wealth. However in today’s accounting world I believe there are numerous standards and policies that lend themselves to create an ethical rich environment. One endeavor known as the Sarbanes-Oxley Act revolutionized the accounting industry adding such measures as requiring the leadership of corporations to certify the accuracy of each individual financial statement to restore the faith of investors in a time period that was rocked with
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misconduct, along with a detailed process into recovering from this scandal. We will begin moving forward into rolling out an accounting department ethics program. The program will include a detailed Code of Ethics, an Ethics Training class for all employees, an Ethics Help-Line where employees can anonymously report any violations of the Code of Ethics, periodic evaluations, and a method of monitoring and tracking systems. The business benefit of these programs will help manage values and help maintain
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Internal Controls are a growing issue for compliance of the Sarbanes-Oxley Act of 2002 (SOX) (Kimmel,Weygandt & Keiso, 2009). Under SOX all companies publicly traded will maintain an adequate system of internal controls (Kimmel, Weygandt & Keiso, 2009). Some of the internal controls characteristics include, control environment, risk assessment, control activities, information/communication, and monitoring. According to Roadmap for an IPO, private companies pondering on going public should consider
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