Case Study Accounting Keller Fi504

January 31, 2012 Brian McKenzie, President LJB Company 3434 Pond View Street Durham, NC 27707 just Mr. McKenzie: It is my pleasure to provide advice as to how inherent control outhouse 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 summate 18 needed to maintain an adequate system of midland control, so the corporate executives and boards of directors essential ensure that these controls be ceaselessly met in a reliable and effective way. Furthermore, independent remote auditors must attest the adequacy of the internal control system. As a result of Sarbanes-Oxley mask, every employees responsibility for accurate 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 severe. Som e U.S. companies study 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 news report officers and pay chiefs keep noned: the new requirements triggered comprehensive reviews of how companies enter 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 do investors aver and gives them more confidence. The Public Company Accounting perplexity board (PCAOB) was also created a! s a result of the Sarbanes-Oxley Act. many a(prenominal) 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, run it on our website: OrderCustomPaper.com

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