To: The President of LJB Table of Contents * Introduction * Sarbanes-Oxley requirements with publicly traded companies * Effective procedures currently being used * Conflicts and recommendations * Conclusion * Bibliography To: President of LJB Company After reviewing the information provided on LJB Company I have concluded that there are internal controls that must be in place according to Sarbanes-Oxley before taking the company public. The company is on track with some
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the absence of Administrative Controls impact corporate liability? In the absence of Administrative Controls, there can be serious liability implication that can affect the company in the legal sense. Much of the legality can be traced to The Sarbanes-Oxley Act, Title IV section 404 which “requires all publicly traded companies to
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Case Study 2 FI504 Accounting and Finance for Managerial Use and Analysis Recommendations for LJB Company: Requirements for Going Public: A requirement of all publicly traded companies is to comply with the Sarbanes-Oxley Act of 2002. This means that LJB would be required to maintain a system of internal control. The controls must be reliable and effective, which the executives and Board of Directors must monitor. Also, an outside auditor must confirm that the control systems are
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properly so that the company does not get audited and in possible trouble. These are the two primary goals is to “safeguard assets and to make sure that there are accuracy and reliability of accounting records.” (Weygandt & Kimmel, 2008). The Sarbanes-Oxley Act of 2002 “is regulations passed by congress in 2002 to try to reduce unethical corporate behavior. It imposes more responsibilities on corporate executives and boards of directors to ensure those companies’ internal controls are in order.”
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Test Correlation Table Question Types/Level of Difficulty |LEARNING OBJECTIVES | |Easy |Moderate |Difficult | |1. Explain the foundations of control. |TF |1, 3 |2, 4, 5, 7 |6 | | |MC |1, 5, 7, 10, 13, 16, 23, |2, 6, 8, 9, 11, 12, 14, |3, 4, 20, 27, 30, 31, 36,| |
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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 Law Stephanie Mosley ACC 340 University of Phoenix Richard Calabria 07/23/2012 To enhance the dependability and accountability in an effort to safeguard shareholders, the federal government for the United States of America established the Sarbanes-Oxley Act on July 30, 2002. The Public Company Accounting Reform and Protection Act of 2002 is also used to refer to this law. Numerous acts of corruption in the business sector continued throughout the late 1990s as well as
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Assignment #2: First Steps Educational Program 08/15/2013 Financial Accounting Professor: Dr. Wendy Achilles Abstract First Steps Educational Program is a program that will incorporate traditional educational methods and Montessori methods. The program will educate students from the age of 2 – 17 years old. Teachers will identify their learning styles early in the program and will create a program that best fits their
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Auditing Principles and Procedures ACC2366 Section311 SOX Discussion Question: Section 302 of the Sarbanes-Oxley Act states that senior management must certify the accuracy of the financial statements produced by that accounting firm. How will this section of the act affect senior management’s cautiousness before signing off on the financial statements? Do you think this mandate will encourage more ethical people in senior management roles? Why? Which major corporation that we’ve studied recently
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Sarbanes – Oxley Act The Sarbanes-Oxley Act (SOX) is named after its’ sponsors, U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley. The act was enacted on July 30, 2002. It is also known as the Public Company Accounting Reform and Investor Protection Act (Senate) and the Corporate and Auditing Accountability Act (House). The bill was enacted as a reaction to a large number of major corporate and accounting scandals. These scandals raised public confidence in
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