If LJB decides to go public the first thing the President needs to about new internal control requirements is the Sarbanes-Oxley Act or SOX. The Sarbanes-Oxley Act is a United States federal law which sets new or enhanced standards for all U.S. public companies. The reason that this SOX bill was created was because a a number of major corporate and accounting scandals. When these scandals happened they cost investors billions in losses because the share prices fell it shook public confidence in
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Unethical Behavior Article Analysis ACC/291 The Sarbanes Oxley Act was passed as a result of plenty of corporate scandals. The purpose of this act was to protect investors and to provide them with accurate and reliable information, and to disclose all information that can affect an investor’s decision. It was passed to restore the confidence of investors. The Sarbanes Oxley Act has impacted financial statements in several ways. The act has asked that independent
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even underreporting the existence of liabilities. The purpose of the Sarbanes-Oxley act is to, “Protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.” ("Sarbanes-Oxley Essential Information", 2003-2012). The Sarbanes-Oxley act was named after senator Paul Sarbanes and Representative Michael Oxley. Sarbanes and Oxley drafted the Sarbanes-Oxley act of 2002; both wanted to make sure that any business or corporation
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the Sarbanes Oxley act and what it requires when it comes to partner rotation. It is important to know what the current rules and requirements are before we discuss how they should be changed. The next item I will discuss is auditor independence and how it is affected by audit rotation. After I talk about the current rules and independence, I will discuss the advantages and disadvantages of mandatory audit rotation. Sarbanes-Oxley Act In 2002, President George W. Bush signed the Sarbanes-Oxley
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|Case study : 2 | |Internal Control Evaluation | |LJB Company | |
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Case Study 2—Internal Control Due by Sunday of Week 5, 11:59 p.m., mountain time LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The president wants to be aware of any new regulations required of his company if they go public, so he met with a colleague of yours at a local restaurant. The president of the company explained the current system of internal controls to your colleague
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Sarbanes-Oxley Act: Cost Benefit Analysis The Sarbanes Oxley Act was signed into law by President Bush in 2002. This Act was in direct response to the accounting scandals of the early 2000s. A time that I remember very well, because I’d just graduated from college into the accounting industry, and it was in a total uproar. The Sarbanes Oxley Act (SOX) ordered a number of reforms to enhance corporate responsibility, financial disclosure, and to fight corporate and accounting fraud. This regulation
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The Sarbanes-Oxley Act of 2002 is a United States federal law. It is legislation that was introduced proposing changes to regulating the financial practices as well as regulations pertaining to corporate governance, auditor independence, internal control assessment, and enhanced financial disclosure. It also sets several deadlines for compliance. This piece of legislation is named after its two major contributors that of Senator Paul Sarbanes and Representative Michael Oxley. The act arrangement
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goals and the promises of Sarbanes-Oxley Act”. On July 25, 2002 the date when stock market indices were making a new history against over publicized corporate scandals, bankruptcy and accounting misstatements, the new legislation “The Public Committee Accounting Reform and Investor Protection Act of 2002” widely known as Sarbanes Oxley Act was passed by the congress in response to investment company abuses. On the article, “The goals and the promises of Sarbanes-Oxley Act”; John C. Coates, professor
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Memo To: John Clarks; President of LJB Company From: Certified Public Accountant Date: 1/22/2012 Re: LJB Internal Control Analysis Dear John, In regards of your company going public, you must be informed that under the Sarbanes Oxley Act all publicly traded U.S. corporations are required to maintain an adequate system of internal control. These internal controls are reliable and effective and if your company fails to comply, it will be a subject to fines, and company officers can be imprisoned
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