Accounting Report

Enhanced Standards Sarbanes-Oxley Act o The Sarbanes-Oxley Act of 2002 (also known as SOX) was created by and by the business relationship scandals of Enron and WorldCom. Enron was a gas occupation corporation which overdraw profits by modifying balance sheets to pull more tender outcomes that were not true. WorldCom was the Nations encourage largest telecommunication keep comp whatsoevers which overstated its wampum for 2001 and 2002 (Lyke & Jickling, 2002, p. 1). After these scandals unfolded the SOX act as was a instruction to reassure investors that there money was safe. hit the books the new or enhanced standards for all U.S. public company boards, management, and public accounting firms that the SOX required. There atomic number 18 five sections of SOX that atomic number 18 particularly relevant to rectifying these scandals. The first is section 302 which says that all financial reports should meet certain certifications: * Be reviewed by the si gn police officers * Everything in the report is true and nothing is misleading * The financial statements and entropy usher the financial condition respectfully * The signing officer is responsible for native controls and has reviewed these interior controls within the last 90 days and describe the findings.

* List all deficiencies in the innate controls and information of any artifice that involves employees who are involved with the inwrought controls. * A crucial change in inside controls that could save a cast out impact on internal controls. This section provides adequate information that helps eliminate any fraud a! nd any misrepresentation of documents. as well by having the signing officers signoff on documents if any fraud is afterward detected it narrows polish the list of possible culprits. Having controls reviewed every 90 days I believe helps catch fraudulent documents because the internal controls are existence kept up with routinely (Sox, 2003.). component 401 requires that all financial statements be accurate and does not verify any...If you want to devil a full essay, order it on our website: BestEssayCheap.com

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