FI504 Accounting and Finance Case Study #2 valuation of Internal Controls Bruce avant-garde Apeldoorn DeVry University Attention Mr. President, The Sarbanes-Oxley Act of 2002 is a unite States federal rectitude which sets new or enhanced standards for unscathed U.S. state-supported companies. The intellectual that this Sarbanes-Oxley Act of 2002 bill was created was because of a turn of major corporal and accounting scandals. When these scandals occurred they cost investors billions in losses because the sh be prices knock down it shook creation assertion in our securities securities industrys. That is why it is measurable to comply with the Sarbanes-Oxley Act of 2002 requirements. This federal agency that LJB would be required to take note a dodging of indispensable control. The controls mustiness be received and effective, which the executives and Board of Directors must monitor. Also, an outside auditor must patronize that the control systems argon sufficient. Something to consider when going public is that the be of being a public keep company have close to duplicate as a event 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 occlusive will be additional work on some(prenominal) designing, examen and auditing of controls if LBJ decides to go public, but the control system whitethorn result in money and time saved in the semipermanent regardless. We have to foresee the importance and understand t hr advantages when the company goes public; ! 1. Broader access to raising swell 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 inside 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 very much try to...If you want to get a encompassing essay, couch it on our website: OrderCustomPaper.com
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