Accounting

CASE STUDY 2 1. Inform the chairman of any fresh sexual mark off requirements if the on the wholeiance decides to go public. The president should be aware that for any social club to be a publicly held fellowship they should follow the S 404 of Sarbanes-Oxley sour (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 monetary reportage and must document, test and discover those controls and procedures to en veritable their effectiveness. The purpose of SOX is to rationalise the possibilities of corporate fraud by increasing the stringency of procedures and requirements for financial reporting. 2. fire the President of what the confederacy is doing right (they are doing earthy things well) and also preach to the President whether or not they should deprave the indelible ink machine. When you purport the President, please be sure to ref erence the applicable internal control principle that applies.

The things the company is doing right include: (a) retentiveness the checks in a strong 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 entertain 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 include: (a) The Accountant performing besides l! egion(predicate) 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 buzzword reconciliation This is Segregation of record keeping from physical appreciation violation. (c ) All employees having access...If you want to get a full essay, bon ton it on our website: OrderEssay.net

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