Act of 2002 was passed to provide more oversight of accounting professionals. The Sarbanes-Oxley Act of 2002 created the Public Company Accounting Oversight Board (PCAOB). The PCAOB is a nonprofit, private-sector corporation that is responsible for the oversight of accounting professionals who are engaged in providing independent audit reports for publicly traded companies (SEC.GOV). One of the effect of the Sarbanes-Oxley Act of 2002 was to make it “illegal to provide certain non-attest services
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Financial Ratios & Other Financial Analysis Tools Here is a list of many ratios used to analyze a company's financial condition - along with an explanation of why they are considered to be important. Liquidity Ratios * Current Ratio * Acid Test Ratio * Average Collection Period Coverage Ratios * Times Interest Earned * Net Income + Non-cash Exp / Current Portion of LT Debt Leverage Ratios * Fixed Assets / Tangible Net Worth * Debt to Tangible Net Worth
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1 Apple Computer began as a two-man partnership in a garage. It grew rapidly and, by 1985, became a large publicly traded corporation with 60 million shares of stock and a total market value in excess of $1 billion. At that time, the firm’s more visible cofounder, 30-year-old Steven Jobs, owned 7 million shares of Apple stock worth about $120 million. Despite his stake in the company and his role in its founding and success, Jobs was forced to relinquish operating responsibilities in 1985 when
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Delivering a WOW experience + GOING TO EXTREMES FOR CUSTOMERS -The longest customer service call took almost six hours -Another rep helped a caller locate a nearby pizza place that would deliver after midnight. -On another call, the rep spoke entirely in third-person at the request of the customer. Hsieh says he considers the extra costs of running such a full-service operation as marketing costs, because good phone experiences encourage people to say positive things about Zappos to their friends
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Internal Controls Under Sox, all publicly traded corporations are required to maintain an adequate system of internal controls. It is recommended that LJB being a relatively small sized company in terms of its employees should reevaluate the costs versus benefits of being a public traded company. It LJB decided to issue stock; they will need to determine how many shares of stock should be sold and the value that should be assigned to the stock. With the internal controls that need to be placed
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States and identifying the processes Wal-Mart uses to comply with SEC regulations, and an evaluation of Wal-Mart’s financial performance during the past two years using financial ratios and the trend each ratio tells about the financial health of the company. Assess the role of ethics and compliance in your organization’s financial environment The role of ethics and compliance in Wal-Mart’s financial environment is founded on the three Basic Beliefs set forth by Sam Walton (founder of Wal-Mart). The
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36 percent on the announcement day. For these companies, regression analysis reveals that abnormal returns are higher the more a firm spent on fixing or preventing Y2K-related problems. Furthermore, Y2K-ready stocks have outperformed industry peers following the year 2000 both in terms of operating and stock return performance. The evidence suggests that investors understood the severity of the problem and were able to distinguish between companies for which the issue was important and those
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BACKGROUND OF KRISPY KREME DOUGHNUTS Krispy Kreme Dougnuts was founded on July 13, 1937 in Winston-Salem, North Carolina, United States by Vemon Rudolph. The company became a publicly-traded company in April 2000. Krispy Kreme Doughnuts produces approximately 5.5 million doughnuts a day consisting of 20 varieties. Krispy Kreme Doughnuts serves customers in 395 stores where 40 stores are in the United States and the rest are in 10 foreign countries namely Australia, Canada, Hong Kong, Indonesia
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China's largest e-commerce company, on Friday became a publicly traded technology powerhouse, launching a blockbuster share offering in New York that drew attention worldwide. Executive Chairman Jack Ma states that, “Alibaba will keep its primary focus on China.” If this is the case, why did the firm have an initial public offering in the United States? Alibaba has captured the attention of American investors, politicians and consumers to an extent that is unusual for a company that does much of its
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THE SARBANES OXLEY ACT of 2002 The Sarbanes Oxley Act of 2002 was signed into law after a series of corporate financial scandals affected companies such as Enron, WorldCom, and Arthur Anderson. It provides a solid set of government rules that will discourage and punish corporate and accounting fraud and corruption by imposing severe penalties for wrongdoers, while protecting the interest of workers and shareholders. Acknowledged as the most significant change to securities laws since
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