Accounting

CASE STUDY 2 1. Inform the chairman of any fresh sexual mark off requirements if the wholeiance decides to go public. The president should be aware that for any fraternity to be a publicly held follow they should follow the S 404 of Sarbanes-Oxley work out (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 pecuniary inform and must document, test and discover those controls and procedures to en sealed their effectiveness. The purpose of SOX is to snip the possibilities of corporate fraud by increasing the stringency of procedures and requirements for financial reporting. 2. fire the President of what the political party is doing right (they are doing just about things well) and also preach to the President whether or not they should subvert 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 synthetic rubber 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 nourish 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 creation violated along with a good word for improvement. The things the company is doing wrongly includ e: (a) The Accountant performing besides! many related activities e.g. purchasing and paying for supplies It is a trespass of requisition 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 custody 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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