Accounting

CASE STUDY 2 1. Inform the chairman of any(prenominal) fresh sexual mark off requirements if the totallyiance decides to go public. The president should be aware that for any friendship to be a publicly held order they should follow the S 404 of Sarbanes-Oxley acquit (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 financial coverage and must document, test and discover those controls and procedures to en authoritative their effectiveness. The purpose of SOX is to take the possibilities of corporate fraud by increasing the stringency of procedures and requirements for financial reporting. 2. fire the President of what the caller-out is doing right (they are doing highly strung things well) and also preach to the President whether or not they should get the indelible ink machine. When you purport the President, please be sure to reference the applicable internal control principle that applies.

The things the company is doing right include: (a) retentiveness the checks in a true(p) It is a Physical control principle (b) Using of a pre-numbered invoices This is documentation procedures I provide recommend for the president to get the indelible ink machine because it will help 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). Please be sure to include the internal control principle that is macrocosm violated along with a good word for improvement. The things the company is doing wrongly include: (a) The Accountant performing b! esides galore(postnominal) related activities e.g. purchasing and paying for supplies It is a trespass of segregation of related duties principle (b) The Accountant also receives the checks and completes the monthly chamfer reconciliation This is Segregation of record keeping from physical gustatory sensation violation. (c ) All employees having access...If you want to get a full essay, bon gross ton it on our website: OrderEssay.net

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