Case Study 2 Fi504

FI504 Accounting and Finance Case Study #2 military rating of Internal Controls Bruce avant-garde Apeldoorn DeVry University Attention Mr. President, The Sarbanes-Oxley Act of 2002 is a fall in States federal rectitude which sets new or enhanced standards for full U.S. state-supported companies. The intellectual that this Sarbanes-Oxley Act of 2002 bill was created was because of a subprogram of major corporal and accounting scandals. When these scandals occurred they cost investors billions in losses because the shargon prices knock down it shook cosmos trust in our securities foodstuffs. That is why it is measurable to comply with the Sarbanes-Oxley Act of 2002 requirements. This core that LJB would be required to take note a arranging of internecine 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 are sufficient. S omething to consider when going public is that the be of being a public keep company have close to doubled as a case 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 bode will be additional work on some(prenominal) designing, interrogation and auditing of controls if LBJ decides to go public, but the control system whitethorn result in money and time saved in the long regardless. We have to foresee the importance and understand thr advantages when the co mpany goes public; 1. Broader access ! to raising seat of government leading to increase fiscal 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 deep down 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 a lot try to...If you want to get a encompassing essay, ordinate it on our website: OrderCustomPaper.com

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