Acct 504 Case Study 2

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ACCT 504 08/10/2012 The current requirements state that the company's filings do not contain any misrepresentations (for annual and interim filings); the financial statements and other financial information in filings is fairly presented (for annual and interim filings); they have designed, or caused to be designed under their supervision, disclosure controls and procedures and internal control over financial reporting (for annual and interim filings); they have evaluated, or caused to be evaluated under their supervision, the effectiveness of disclosure controls and procedures, and disclosed their conclusions in MD&A (for annual filings only); and any change that has, or is likely to, materially affect the company's internal control has been disclosed in MD&A (for annual and interim filings). There are however new requirements of the CEO and CFO these are as follows: The CEO and CFO must certify that they have evaluated internal controls. When a material weakness in internal control is identified they must certify that it has been disclosed in MD&A. The CEO and CFO must certify that they have reported certain fraud to the auditors and either the board or audit committee. The CEO and CFO must certify which control framework was used to design internal control. Finally, where a proportionately consolidated or variable interest entity, or a recently acquired business, is excluded from disclosure or internal controls, CEOs and CFOs must certify that this has been disclosed in MD&A The company is definitely moving in the right direction by using pre numbered invoices. This is an example of documentation control. The purchase of an indelible in machine would be another step in the right direction since the ink cannot be altered or erased. Printing your check with this machine will help reduce errors and fraud. Storing the checks in the

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