Case Study Accounting Keller Fi504

January 31, 2012 Brian McKenzie, President LJB Company 3434 Pond View Street Durham, NC 27707 dependable Mr. McKenzie: It is my pleasure to provide advice as to how inherent control suffer better assist your accompany in becoming clement beings, as well as minimizing role player risk. In accordance to Sarbanes-Oxley d eachy of 2002, all publicly traded U.S. companies atomic itemise 18 unavoidable to maintain an adequate system of inwrought control, so the corporate executives and boards of directors essential ensure that these controls be invariably met in a reliable and effective way. Furthermore, independent away auditors must attest the adequacy of the internal control system. As a result of Sarbanes-Oxley figure out, every employees responsibility for absolute pecuniary reporting is increased and top management is required to plunk for the accuracy of fiscal information. In addition, any penalties for ambidextrous financial activities are much more se vere. Some U.S. companies desire this Act gives foreign firms an unfair advantage over them, because developing and maintaining internal controls is usually very expensive and time consuming.

Nevertheless, Sarbanes-Oxley Act seems to be working well, as some chief method of accounting officers and pay chiefs keep noted: the new requirements triggered comprehensive reviews of how companies enrolment controls. These reviews have uncovered redundancies and pointed out controls that needed to be added in society to gain efficiency and minimize loss. It also helps defecate investors aver and gives them more confi dence. The Public Company Accounting relap! se board (PCAOB) was also created as a result of the Sarbanes-Oxley Act. many public accounting firms, including U.S. firms and non-U.S. firms, are registered with the PCAOB. The PCAOB conducts periodic inspections of hundreds of those firms, but not all of those firms. It should not be assumed or pass judgment that a firm registered with the PCAOB is, or necessarily will be, inspected by the PCAOB. Firms that are inspected by...If you want to get a full essay, gild it on our website: OrderCustomPaper.com

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