Accounting

CASE STUDY 2 1. set forth the chairman of each young sexual mark dispatch requirements if the alliance decides to go public. The chair should be aw ar that for any company to be a publicly held company they should follow up on the S 404 of Sarbanes-Oxley come (SOX represent). The Act narrate: SOX Section 404 (Sarbanes-Oxley Act Section 404) mandates that all publicly-traded companies must(prenominal) base internal command backs and procedures for financial reporting and must document, test and discover those finds and procedures to escort their effectiveness. The purpose of SOX is to reduce the possibilities of incorporated fraud by increase the stringency of procedures and requirements for financial reporting. 2. preempt the hot seat of what the company is doing proper (they are doing rough things well) and in any case preach to the President whether or not they should buy the unerasable ink machine. When you purport the President, delight be sure to wing the applicable internal control linguistic rule that applies.

The things the company is doing expert complicate: (a) retentiveness the run offs in a safe It is a Physical control principle (b) utilise of a pre-numbered invoices This is documentation procedures I provide recommend for the chairperson to buying the indelible ink machine because it will support to protect the company from check related fraud. 3. Advise the President of what the company is doing wrong (they are definitely doing some things poorly). amuse be sure to acknowledge the internal control principle that is being violated along with a good password for improvement. The things the company is doing wrongly include: (a) The controller performing alike many related activities e.g. acquire and paying for supplies It is a poke of Segregation of related duties principle (b) The Accountant also receives the checks and completes the monthly buzzword reconciliation This is Segregation of go in keeping from physical insight violation. (c ) All employees having access...If you want to disturb a full essay, bon ton it on our website: Ordercustompaper.com

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