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Recommended: Chapter4
Please respond to the My Questions Q10.1, Q10.2, Q10.3, Q10.4, Q10.5 and Q10.6 at the beginning of Chapter 10. In this 3 page paper please state the question and follow with the answer for each question. My Questions Q 10.1 Fraud: What will I tell my MOM? In order for fraud to be committed, the perpetrator must have motive—reason for committing the fraud, such as financial difficulties. The perpetrator must have opportunity—access to the asset or financial statements in order to carry out the fraud. Finally, the perpetrator must have the means to carry out the fraud—knowledge or skills that permit the perpetrator to commit the crime. For fraud to occur, all three conditions must be present. For example, motive and means without opportunity will not result in fraud. Q 10.2 What is SOX? …show more content…
In addition to establishing the PCAOB to regulate the auditors of publicly traded companies, SOX legislation contained the following sections that are especially pertinent to the accounting profession. Q 10.3 What is COSO’s Internal Control Integrated Framework? The COSO Internal Control—Integrated Framework provides a blueprint for implementing an internal control system to assist in ensuring the reliability of financial statements and compliance with Sarbanes-Oxley legislation. The purpose of internal control is to provide reasonable assurance in achieving internal control objectives: Effectiveness and efficiency of operations Reliability of financial reporting Compliance with laws and regulations Q 10.4 What is
Internal controls is defined as a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance
Even though internal controls do not always work, every entity that has workers should have internal controls. Internal controls protect entities from dishonest workers. Internal controls are a series of checks and balances. The Sarbanes-Oxley Act of 2002 was needed to gain control of accounting improprieties. Dishonest accounting has cost company employees millions of dollars in retirement funds. It has also cost investors millions of dollars.
2. Your conclusion paragraph should be more detailed. Restate in just a few sentences the points that you made in your paper and what conclusions you have drawn from those points.
The above is provided so the student has a better idea of the focus of the paper. The complete paper begins below.
SOX at its core was meant to increase the disclosure requirements of publicly traded firms. In addition, SOX increased the role of independent directors in corporate governance, expanded the liability of officers and directors, required companies to assess and disclose the adequacy ...
Answer the following questions with information you learned in the document , your book, and through Internet research:
In 2002, Congress passed the Sarbanes-Oxley Act (SOX) to strengthen corporate governance and restore investor confidence. The act’s most important provision, §404, requires management and independent auditors to evaluate annually a firm’s internal financial-reporting controls. In addition, SOX tightens disclosure rules, requires management to certify the firm’s periodic reports, strengthens boards’ independence and financial-literacy requirements, and raises auditor-independence standards.
You should be able to answer these questions on Wednesday/Thursday when you come to class. You can take notes if you like, or you can annotate your book (post-its work great).
The report on internal controls, according to ExxonMobil’s CEO, Treasurer and Controller, states they are solely “responsible for establishing and maintaining adequate internal control over (ExxonMobil’s) financial reporting.” They evaluated the effectiveness of internal controls over financial reporting based on COSO’s framework and concluded that controls were effective (MD&A, F-22). The report in internal controls acknowledged us—ExxonMobil’s independent public accounting firm PricewaterhouseCoopers LLP (PwC)—stating that the Corporation maintained effective internal control over financial reporting for 2009 and 2010 as it is the responsibility of management to maintain and assess its effectiveness. We, PwC, are responsible only to express an opinion on internal controls, which we opined in 2009 as unqualified (MD&A, F-22).
This topic is a very controversial one. The paper you are about to read could cause intense arguments between some groups of people. All that doesn’t matter to me because when you finish reading this, you will agree with me if you don’t already.
Note: There have been many questions about this homework assignment. Thus, clarifications are posted below in red type. When you answer these questions, bear in mind that each one only counts four points out of 1000 total points for the course. Thus, each one should have a concise answer. No need to write a dissertation.
The PCAOB has the authorization to provide rules governing the following areas; ethics, independence, and quality control for any registered accounting firm...
The PCC was responsible for determining if the exemptions or alterations proposed to the GAAP was acceptable and meant the needs of private company financial statement consumers. In addition, the PCC was the principal advisory group to the FASB in regards to ensuring the proper treatment was given to private companies. Additionally, the PCC works to review all existing regulations under the GAAP to see what standards would require amendments or alterations. The PCC looks to create, consider, and vote on the proposed exemptions or alterations that are to be made. The PCC’s ultimate job is to find the GAAP regulations that can be changed to help improve private company financial
...mpany Accounting Oversight Board (PCAOB) tasked with the oversight of audit of publicly traded companies under the authority of the SEC. The report card is still out on the new law as to whether it will cause change in the corporate office and the corporate governance.
As I write this paper, I am hoping to find the answers to the following five questions: