Acct 504 Case Study 2 Essay

1971 Words 8 Pages
Prepared For
ACCT405: Financial Accounting
Instructor Tim Vantuyl


Case Study 2: LBJ Company Internal Control Assessment

By Brian Tucker
Student ID D40318643

Table of Contents

Preface …..3-5
Body of Report Page …..6
Objectives of Internal Control …..6
Components of Internal Control …..6
Strengths …..7-8
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…
In my industry in commercial credit, our firm is actually required to have officers sign off-balance transaction affidavits to ensure net worth and debt service reporting requirements of requisite credit relationships “are what they say they are” on paper.
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

Related Documents