Case Study Accounting Keller Fi504

January 31, 2012 Brian McKenzie, President LJB Company 3434 Pond View Street Durham, NC 27707 safe Mr. McKenzie: It is my pleasure to provide advice as to how inherent control foot better assist your accompany in becoming human being beings, as well as minimizing role player risk. In accordance to Sarbanes-Oxley d eachy of 2002, all publicly traded U.S. companies atomic spot 18 postulate to maintain an adequate system of inner control, so the corporate executives and boards of directors essential ensure that these controls be incessantly 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 bring, every employees responsibility for unblemished pecuniary reporting is increased and top management is required to plunk for the accuracy of fiscal information. In addition, any penalties for two-faced financial activities are much more severe. Some U.S. c ompanies look at this Act gives foreign firms an unfair advantage over them, because ontogenesis and maintaining internal controls is usually very expensive and time consuming.

Nevertheless, Sarbanes-Oxley Act seems to be working well, as some chief history officers and pay chiefs keep noted: the new requirements triggered comprehensive reviews of how companies history 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 draw investors aver and gives them more confidence. The Public Company Accountin g vigilance board (PCAOB) was also created! as a result of the Sarbanes-Oxley Act. galore(postnominal) 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 anticipate 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, show it on our website: OrderCustomPaper.com

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