Accounting

CASE STUDY 2 1. Inform the chairman of both fresh sexual mark off requirements if the all(a)iance decides to go public. The president should be aware that for any companionship to be a publicly held union they should follow the S 404 of Sarbanes-Oxley fare (SOX Act). The Act narrate: SOX Section 404 (Sarbanes-Oxley Act Section 404) mandates that all publicly-traded companies must base internal hold backs and procedures for pecuniary insurance coverage and must document, test and discover those controls and procedures to en legitimate their effectiveness. The purpose of SOX is to conquer the possibilities of corporate fraud by increasing the stringency of procedures and requirements for financial reporting. 2. fire the President of what the connection is doing right (they are doing unhandy things well) and also preach to the President whether or not they should procure the indelible ink machine. When you purport the President, please be sure to refe rence the applicable internal control principle that applies.

The things the company is doing right include: (a) retentiveness the checks in a riskless It is a Physical control principle (b) Using of a pre-numbered invoices This is documentation procedures I provide recommend for the president to buy the indelible ink machine because it will help to comfort the company from check related fraud. 3. Advise the President of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal control principle that is be violated along with a good word for improvement. The things the company is doing wrongly incl! ude: (a) The Accountant performing besides some related activities e.g. purchasing and paying for supplies It is a trespass of separatism of related duties principle (b) The Accountant also receives the checks and completes the monthly bank reconciliation This is Segregation of record keeping from physical discernment violation. (c ) All employees having access...If you want to get a full essay, bon gross ton it on our website: BestEssayCheap.com

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