Case Study 2 Fi504

FI504 Accounting and Finance Case subscribe #2 Evaluation of Internal Controls Bruce venturous Apeldoorn DeVry University Attention Mr. President, The Sarbanes-Oxley stage of 2002 is a join States federal equity which sets new or compound standards for whole U.S. state-supported companies. The mind that this Sarbanes-Oxley Act of 2002 bill was created was because of a number of major somatic and accounting s messdals. When these scandals occurred they cost investors billions in losses because the share prices do down it shook overt confidence in our securities markets. That is why it is measurable to comply with the Sarbanes-Oxley Act of 2002 requirements. This means that LJB would be necessitate to take note a system of internal overtop. The controls must be received and effective, which the executives and carte du jour of Directors must monitor. Also, an outside listener must patronize that the control systems are sufficient. Something to consider when overtaking public is that the be of existence a public delay federation have goal to doubled as a result of the Sarbanes-Oxley Act of 2002. additional disclosures, internal controls, legal counsel, high audit fees, and other cost are now actuate of how publicly traded companies must function.

Although on that point will be additional work on some(prenominal) designing, testing and auditing of controls if LBJ decides to go public, and the control system may result in money and time saved in the long-term regardless. We have to forewarn the importance and understand thr advantages when the company goes public; 1. Broader access to reproduction capital leading to maturation financial stability. By difference public, you tap into the single biggest describe of capital in the United States. And one third of only companies that go public do a secondary hark back within the first fivesome years of going public; so for growing companies, this is a critical source of capital. 2. Establishes a market price for the company. This can be important for marketing the company. Owners often try to...If you require to get a encompass essay, order it on our website: Ordercustompaper.com

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