When the loan agreement was made, the bank required Riverside Bottling Company to maintain a minimum cash balance, which is called compensation balance, and it provided the bank with support for their loan. This would also be a breach of the Sarbanes-Oxley Act, which has put legal procedures in place to avoid these kinds of actions. The bank would suffer in that the agreed upon funds would not be in the bank collecting interest that the bank uses to fund other loans and such. Also, since the purpose
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Sarbanes-Oxley: Benefits vs. Costs Sarbanes-Oxley: Benefits vs. Costs The American Competitiveness and Corporate Accountability Act of 2002, commonly referred to as the Sarbanes-Oxley Act (SOX) was enacted in response to corporate financial scandals involving companies such as Enron, WorldCom, and Tyco International. While SOX was written specifically for public companies; a few provisions, including whistleblower protection and document retention apply to all companies and nonprofit organizations
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Running head: PROJECT PROPOSAL FOR WEEK TWO Project Proposal for Week Two Tawfiq Abu-Raqabeh Argosy University/Sarasota Research methodology in Accounting B7251 Pesi Amaria, Ph.D. September 30, 2007 Project Proposal Hi Dr. Amaria: I want to work on differences between Walgreen and CVS Pharmacy store and find the following:
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Sarbanes Oxley Act Institution Name Date Sarbanes Oxley act is a legislation put in place due to the high profile WorldCom and Enron financial disgrace in protecting shareholders and the public in general from errors in accounting and the falsified performance in the activity. The main function of this act is to show how records are to be kept in a specific period of time. This act is managed by the Securities and Exchange Commission whereby it has the power to put rules on the requirements
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Regulation in our nation today – too much or not enough? That is the question this paper addresses. The Securities Acts of 1933 and 1934, the Foreign Corrupt Practices Act of 1977, along with the Sarbanes Oxley Act will be highlighted and discussed. The Securities Act of 1933 was the first major piece of federal legislation regarding the sale of securities. Prior to this legislation, the sale of securities was primarily governed by state laws; however, the market crash of 1929 raised some
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Unethical Practices and Behavior in Accounting Name Institution Course Tutor Date Unethical Practices and Behavior in Accounting The Sarbanes-Oxley (SOX) Act of 2002 was passed by the congress to protect investors from fraudulent accounting activities by organizations (Hart, 2009). Investors depend on the information that they receive from accountants to make investment decisions and hence if incorrect information is provided, the investors make inaccurate decisions, which could be costly
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Major Case Study Cendant Corporation 1 Briefly summarize the accounting techniques used by Cadent to manipulate financial results. Categorize each technique into one of Schilit’s financial shenanigans. Cendant used aggressive accounting to shift current marketing expenses to a later period by capitalizing the cost; this is shenanigan number 4. Cendant also swift future expenses to the current period and later released reserves into income. When Cendant made acquisition, it took large restricting
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The Impact of the Sarbanes-Oxley Act on Corporate America In discussing the impact of one of the most important laws passed in Congress to legislate the accounting and reporting rules of corporations, I need to give a brief definition and some background information for the Sarbanes-Oxley Act. In 2002, the Sarbanes-Oxley Act was passed into law by the United States Congress. After a series of high profile corporate scandals, such as Enron and WorldCom, the Congress of the United States passed
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in general business in the event that you choose to seek after this alternative. Traded on an open market enterprises are obliged to execute and take after the rules for inward controls and techniques for monetary reporting, put forward by the Sarbanes-Oxley Act (SOX) of 2002. This implies that upper administration and executives at LJB are in charge of guaranteeing that the controls are viable and solid, besides the organization should intermittently use outside examiners that will have the capacity
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new internal control requirements if the company decides to go public. (7 points) Answer – Based on facts given in the case, new internal control requirements that are needed for the company to go public are listed below a. Compliance with Sarbanes-Oxley Act Regulations b. Compliance with SEC, GAAP and IFRS procedures to record all transactions c. Internal audit on company financial and business processes and transactions d. Implementation of better security measures for data protection
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