information you provided my colleague with listed below are my recommendations based on the six principles above: New internal control requirement if you decide to go public. The newest internal control requirement is the Sarbanes-Oxley Act of 2002 (SOX). Under the Sarbanes-Oxley Act, all publicly traded U.S. corporations are required to maintain an adequate system of internal control. Corporate executives and boards of directors must ensure that these controls are reliable and effective. In addition
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concerns about the current internal control of the company. Our recommendations of the new internal control our based on Sarbanes Oxley Act; we believe this information will serve its purpose to fit the needs of LBJ Company. New Internal Control Requirements: According to the investigation, we reviewed the following areas of internal control that need to be under the Sarbanes Oxley standards: * Human Resource Control * Segregation of Duties * Establishment of Responsibilities * Physical
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Enron, Tyco, etc. The Sarbonese-Oxley Act (SOX) has helped make internal controls a requirement for all publically traded U. S. Corporations. SOX forces companies to pay attention even extra attention to their internal controls. The Sarbonese-Oxley Act makes boards and executives more responsible for the internal controls and making sure they are effective and consistent (Weygandt, 2008). Also SOX requires independent auditors to be brought in to a company and review their records. An independent
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Read the Arthur Andersen’s Troubles Ethics Case on pp. 107–113 (Ch. 2) of the text. Answer questions 1, 3, and 4 on p. 113 in 200 to 300 words. When responding to question 3, focus solely on the Enron case. 1. What did Arthur Andersen contribute to the Enron disaster? Arthur Andersen (AA) did not advise the Enron Audit Committee that Enron’s policies and internal control were not adequate to protect the shareholders’ interests even though AA had assumed Enron’s internal audit function (Brooks
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being recorded and tracked to ensure accuracy. The Sarbanes-Oxley Act of 2002 was put in place because of the intentional inaccuracy of a company’s accounting practices and to make sure that high management and board of directors make sure they adhere to the procedures of internal controls. This act forces management to make sure that such controls are put in to place and maintained at all times. There are eleven titles within the Sarbanes-Oxley Act, but there are six that are very important when
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presented as an assessment of the preparedness of the LJB Company to go public at a future date. By researching current regulations regarding publicly traded firms we hope to prepare for a smooth transition into the trading market. The Sarbanes-Oxley Act of 2002 (SOX) has established the following guidelines for publicly traded corporations and require adherence for internal controls and procedures for financial reporting. Senior management and executives will be responsible for ensuring
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Role and Functions of Law Role and Functions of Law Without laws our society as a whole would be chaos. While some people live their lives by their morals, others make decisions solely based on consequences. Laws are designed to rule the people that don’t take their personal morals into account when making decisions, or people that have a set of morals that are way different than the norm. Without a clear set of consequences people would likely be running around all “willy-nilly” murdering
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Legislative initiatives and proposals, e.g. Sarbanes–Oxley Mariecris Dela cruz May 11, 2013 Submitted by: Rose Chezca D.G Regalado Submitted to: Prof. Carolina C. Guerrero May 18, 2013 Sarbanes- Oxley act also known as the Public Company accounting reform and investor protection act ( In the Senate) and Corporate and Auditing Accountability and responsibility Act ( in the House) commonly known as SOX act or Sarbox Act. Sarbanes-Oxley Act was enacted as a reaction to a number
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Auditing-Ambler Short Essay #2 November 3, 2009 Sarbanes-Oxley Act Provisions Publicly held companies are mandated to specific regulations of Sarbanes-Oxley Act; while privately held and non-profit companies are not specifically required to adopt the provisions of Sarbanes-Oxley Act (SOX). I don’t agree with private companies adopting the entire provision of Sarbanes-Oxley Act. I do support adopting certain parts of the Sarbanes-Oxley Act provision. It is cost prohibitive for private and
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Two provisions of the Sarbanes-Oxley Act: Sarbanes–Oxley Section 302: This section deals with disclosure controls. Under Sarbanes–Oxley, two separate sections came into effect, one civil (Section 302) and the other criminal (Section 906). Section 302 of the Act mandates a set of internal procedures designed to ensure accurate financial disclosure. The signing officers must certify that they are responsible for establishing and maintaining internal controls and have designed such internal controls
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