Acct 504 Case Study 2 Essay
ACCT405: Financial Accounting
Instructor Tim Vantuyl
Case Study 2: LBJ Company Internal Control Assessment
By Brian Tucker
Student ID D40318643
Table of Contents
Body of Report Page …..6
Objectives of Internal Control …..6
Components of Internal Control …..6
Summary and Conclusion
With its introduction in 2002 the Sarbanes Oxley Act was meant to slow and detour the accounting infractions and criminal acts of recent companies like Enron, Arthur Anderson, World Com. SOX has changed the landscape of regulations as it relates to the role of corporate governance in overseeing and verifying the internal function and financial practice of …show more content…
Section 404 focuses on published information of annual reporting an attestation of the officers as to the effectiveness of the internal control procedures, structures, and protocols for the financial reporting process. Additionally it requires the additional attestation of a registered accounting firm regarding this information and annual reporting.
Section 409 emphasis is placed on firms to be required to disclose to the public in an urgent manner any information that could materially alter the operations financial disposition. The scope of this communication should be qualified and quantified in comparative terms which basis finds itself in applicable and appropriate economic and industry terms and trends.
Last, Section 802 was a big change for the reporting of the financial information and the reporting of the effectiveness of internal and audit controls of the firm by the officers. If officers, who are now required to certify all the aforementioned information, are found to be guilty of knowingly and in some cases unknowingly of