PCAOB, The Future of 404 Scott Carlson Mark Geiger Evallory Spratlin Kimberly Williams Liberty University Abstract Since the Sarbanes-Oxley Act of 2002 was implemented, small businesses have objected to what they describe as severe financial impacts, which are a byproduct of Rule 404 of the act. This paper will explore the allegations of small businesses, Congress’ response and what this dialogue means for the future of the Sarbanes-Oxley. The implications of this research are important because they have bearing on future regulation in the financial industry. The Sarbanes-Oxley Act of 2002 is a comprehensive bill that has proven to be a work in progress since its passage. The necessity of the bill can hardly be disputed
Lastly, we will summarize the information presented with a synopsis of what internal control measures are recommended. Ultimately, LBJ wants to go public in the future and to do so the company must have strong internal accounting controls in place and utilized. LJB Company: Internal Controls Report. Per LBJ’s request, this report has been created to provide your organization with the tools necessary to implement a solid internal control accounting procedure system. Internal controls are extremely important accounting practices that help ensure the safety of your business from fraud and clerical errors.
3、 To increase employees who violated company contract and punished to legal. Case #2: Anne Boswin works closely with Robert Acertado The solution of the case is that: 1. Acertado violated the loyalty Code of Ethics and Standards of Professional Conduct when he downloading the model from Greenfield Financial Corporation. Although Anne Boswin developed the financial model and consent Acertado downloads, but the proprietary of the model belongs to the company, not Boswin. 2.
Entities such cases have international repercussions and prosecution of the guilty person aggrieved. In Ireland, a class suit has been brought against Alternative Advantage plc and Thema International Fund plc, investments funds that handled business for Madoff, by clients whose investments were affected by the case. SEC has taken a number of reforms to prevent malicious businessman deceive the public. Including through the promotion of investment funds designed to surprise audits, and establish measures of different portfolios of assets authenticity investor protection. Question # 2 The main objective is to establish an independent auditor to submit the accuracy of the accounts, and records to confirm the actual existence of assets.
The company still went public even though the management was aware of their losses. They needed new business strategy that will be a source of revenue for the company. After the internet bubble “burst” it became obvious that NextCard was deceiving investors and other stakeholders. The Feds were able to uncover the fraudulent accounting practices used by the audit team of NextCard. Given PCAOB oversight of accounting firms and the AICPA Code of Conduct, discuss whether or not you believe that public accounting firms can successfully manipulate audit work papers and records of clients engaged in fraudulent activity.
Determine what advances in accounting and / or information technology could have prevented the event from occurring. Provide support for your argument. Evaluate what changes should be made to both the Sarbanes-Oxley Act of 2002 and other current laws in order to make them more effective in deterring companies from committing crimes. Recommend a strategy that the company you indicated may use to prevent future business information failures. Indicate how the company should approach the implementation of your recommended strategy.
Determine what advances in accounting and / or information technology could have prevented the event from occurring. Provide support for your argument. Evaluate what changes should be made to both the Sarbanes-Oxley Act of 2002 and other current laws in order to make them more effective in deterring companies from committing crimes. Recommend a strategy that the company you indicated may use to prevent future business information failures. Indicate how the company should approach the implementation of your recommended strategy.
Objective of the case: The main objective of the case is to bring emphasis on auditing high risk accounts, like cash and inventory. PricewaterhouseCoopers did an adequate enough job during their audits to show they questioned and investigated Campbell’s Riskier accounts. Most Important highlights: Stockholders file a class-action lawsuit against Campbell due to questionable business practices and accounting schemes to enhance reported earnings. Included in the lawsuit was it’s independent auditors PricewaterhouseCoopers (PwC). To maintain reasonable gross profit margins Campbell executives reportedly instructed it’s accountants to record large, period-ending trade discounts of 15-20% as selling, general and administrative expenses instead of reductions of gross revenues.
Determine what advances in accounting and / or information technology could have prevented the event from occurring. Provide support for your argument. Evaluate what changes should be made to both the Sarbanes-Oxley Act of 2002 and other current laws in order to make them more effective in deterring companies from committing crimes. Recommend a strategy that the company you indicated may use to prevent future business information failures. Indicate how the company should approach the implementation of your recommended strategy.
First, Citigroup must reconsider its strategic choices and critical tasks in light of its new strategic context. Second Citigroup must align its structure and culture with its redefined critical tasks using at the keys to successful change. Third, Prince must reinforce the structural and cultural changes with his behavior as leader of the company Case Analysis: Case 1: Enron Corp.'s On July 2003 The Securities and Exchange Commission instituted and settled enforcement proceedings against two major financial institutions, J.P. Morgan Chase & Co. and Citigroup, Inc., for their roles in Enron Corp.'s manipulation of its financial statements. Each institution helped Enron mislead its investors by characterizing what were essentially loan proceeds as cash from operating activities. The proceeding against Citigroup also resolves the Commission's charges stemming from the assistance Citigroup provided Dynegy Inc. in manipulating that company's financial statements through similar conduct.