Case Study 2 Fi504

FI504 Accounting and Finance Case Study #2 evaluation of Internal Controls Bruce avant-garde Apeldoorn DeVry University Attention Mr. President, The Sarbanes-Oxley Act of 2002 is a linked States federal rectitude which sets new or enhanced standards for all in all U.S. state-supported companies. The intellectual that this Sarbanes-Oxley Act of 2002 bill was created was because of a spell of major corporal and accounting scandals. When these scandals occurred they cost investors billions in losses because the shargon prices knock down it shook globe boldness in our securities merchandises. That is why it is measurable to comply with the Sarbanes-Oxley Act of 2002 requirements. This center that LJB would be required to take note a formation of cozy control. The controls essential be received and effective, which the executives and Board of Directors must monitor. Also, an outside auditor must patronize that the control systems atomic number 18 suffici ent. Something to consider when going public is that the be of being a public keep company have close to doubled as a ending of the Sarbanes-Oxley Act of 2002. special disclosures, internal controls, legal counsel, higher audit fees, and other cost are now part of how publicly traded companies must function.

Although on that gunpoint will be additional work on some(prenominal) designing, test and auditing of controls if LBJ decides to go public, but the control system whitethorn result in money and time saved in the long-term regardless. We have to foresee the importance and understand thr advantages w hen the company goes public; 1. Broad! er access to raising roof leading to increase monetary stability. By going public, you tap into the single biggest mention of capital in the United States. And one third of all companies that go public do a secondary pass at bottom the first five 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 merchandising the company. Owners often try to...If you want to get a encompassing essay, evidence it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper