The Act was designed to promote honest and ethical conduct; full and accurate disclosure in periodic reports; and compliance with applicable government rules and regulations. The sections in the act that impact corporate responsibility address education and knowledge, accountability, control, fraud, obligations, and truth in accountability. Section 302 of the Sarbanes-Oxley Act introduces the requirement for several certifications regarding periodic financial reports. The signing officers must certify that they have reviewed and approved the report, and that they have evaluated the company's internal accounting controls within the preceding 90 days, and reported honestly on their findings. Under Section 404 of the act, these findings must detail any uncovered control deficiencies or instances of employee fraud, and must also be reviewed and attested by the registered accounting firm.
Internal Controls XACC/280 October 7, 2012 Vaunda Davis Internal Controls Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. Internal Controls are needed to ensure the proper account of revenue under the guidelines of GAAP .These controls are aimed at ensuring compliance with revenue recognition guidelines and safeguarding assets against theft and unauthorized use, acquisition, or disposal is also part of internal control. There are six principles of internal controls. These control principles establish responsibility, using physical, mechanical, and electronic controls; segregate duties, and perform independent internal
True (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result. True E2-4 Instructions Identify the appropriate qualitative characteristic(s) to be used given the information provided below. (a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. Comparability (b) Quality of information that confirms users’ earlier expectations. Confirmatory value (c) Imperative for providing comparisons of a company from period to period.
Financial Statements Paper ACC/280 YOUR NAME University of Phoenix INSTRUCTOR NAME DATE Financial Statements Paper Accounting provides an exceptional contribution to the success of any small or large company. More specifically, accounting assists company owners in their management decisions by providing valuable financial information. Financial accounting is regulated by rules and concepts recognized as “generally accepted accounting principles” (GAAP). The GAAP requires four financial statements which include: the balance sheet, income statement, statement of cash flow, and statement of owner's equity. In this paper, the purpose of accounting and the four financial statements and how they correlate with each other will be discussed.
The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP). The information is important to investors, managers, banks,
The audit for the financial statements will include evidence supporting amounts and disclosures in statements, examining, accounting principles used assessment, estimates made by management, evaluating all of the financial statements overall. The internal control over financial reporting audit will be acquiring an understanding of internal control over financial reporting, evaluating and testing the design and operation of the effectiveness of internal control and conducting procedures as necessary. The internal control over financial reporting within a company is meant to provide a reasonable assurance as to the reliability of financial reporting and for the preparation of the financial statements for external purposes in accordance to the generally accepted accounting principles
● ● Requires codes of ethics for senior financial officers. In addition, Section 404 of the Sarbanes-Oxley Act requires public companies to attest to the effectiveness of their internal controls over financial reporting. 29. Some major challenges facing the accounting profession relate to the following items: Nonfinancial measurement—how to report significant key performance measurements such as customer satisfaction indexes, backlog information and reject rates on goods purchased. Forward-looking information—how to report more future oriented information.
Following is an overview of the Plan with regard to compliance by each of the Facilities with regard to the universal and individual reporting obligations they face with respect to tax policies, employment laws, environmental and manufacturing regulations, international trade restrictions, tariffs, transportation, and the political stability of international governments and trade opportunities. I. Enterprise Liabilities The responsibility for the reporting requirements has been divided amongst the individual managers and directors in such a manner as to provide a system of checks and balances to minimize the opportunities for error by the Company and to limit its legal liabilities. A sample of the division of those responsibilities is as follows: 1) The Chief Financial Officer, with the assistance of the Comptrollers or Senior Financial Officers and Accounting Department Managers of each of the facilities owned or operated by the Company, shall bear responsibility for making all payments and ensuring that the Company complies with all applicable federal, state, municipal and international laws, statutes, regulations or otherrequirements in connection
These four basic financial statements are interrelated and consist of: income statement, retained earnings statement, balance sheet, and statement of cash flows. Accounting is an information system using three basics activities which are identify, record, and communicate economic events to interested users. Companies identify economic events relevant to its business. Financial activities are recorded systematically in a chronological order of events to provide history. Recording also will classify and summarize economic events.
The users are experts in accounting who identify, record, and communicate economic events of their business to its appropriate users. These users are divided in to two groups, internal users and external users. Managers who plan, organize, and run their business are an example of internal users of accounting information. Examples of these managers include marketing managers, finance directors, company officers, and production supervisors. Investors and creditors are examples of external users of accounting information.