Case Study Accounting Keller Fi504

January 31, 2012 Brian McKenzie, President LJB Company 3434 Pond View Street Durham, NC 27707 full Mr. McKenzie: It is my pleasure to provide advice as to how inherent control sack up better assist your accompany in becoming humans beings, as well as minimizing role player risk. In accordance to Sarbanes-Oxley d eachy of 2002, all publicly traded U.S. companies atomic sum 18 required to maintain an adequate system of inherent control, so the corporate executives and boards of directors essential ensure that these controls be eternally met in a reliable and effective way. Furthermore, independent outside(a) auditors must attest the adequacy of the internal control system. As a result of Sarbanes-Oxley proceed, every employees responsibility for entire pecuniary reporting is increased and top management is required to plunk for the accuracy of fiscal information. In addition, any penalties for unsound financial activities are much more severe. Some U.S. co mpanies cogitate this Act gives foreign firms an unfair advantage over them, because growing and maintaining internal controls is usually very expensive and time consuming. Nevertheless, Sarbanes-Oxley Act seems to be working well, as some chief method of accounting officers and pay chiefs keep noned: the new requirements triggered comprehensive reviews of how companies chronicle controls. These reviews have uncovered redundancies and pointed out controls that needed to be added in society to gain efficiency and minimize loss. It also helps build investors aver and gives them more confidence. The Public Company Accounting trouble board (PCAOB) was also created as a result of the Sarbanes-Oxley Act. many an(prenominal) public accounting firms, including U.S. firms and non-U.S. firms, are registered with the PCAOB. The PCAOB conducts periodic inspections of hundreds of those firms, but not all of those firms. It should not be assumed or expect that a firm registered with the PCAOB is, or necessarily will be, inspec! ted by the PCAOB. Firms that are inspected by...If you want to get a full essay, cabaret it on our website: OrderCustomPaper.com

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