These numbers are a weakness because it shows that the stockholders are getting low earnings from their investments, even in year 7, Competition Bikes earned profit of 20 cents per stock. 20 cents per stock was profit and a worthwhile investment for stockholders, year 8 generated .04 cents per stock resulting in a devastating year for Earnings per Share. Our competitor, Two Wheel Racing, did no better and substantiates the fact that the industry as a whole is hurting because sponsors do not want to sponsor bikers right now. This Earnings per share weakness has investors worried, to the point of wanting to sell their stocks because the investment is showing now profit or …show more content…
Competition Bikes needs to develop strategies that are cost effective and add value to the company. They also must require the adoption of enterprise risk and control assessment and monitoring technology. The significance will be grasped when the assessment and monitoring systems linked to SOX fosters continuous progress, with cost controls as low as possible and residual risks at adequate levels.
I propose three strategies to prepare for the audit of the CEO/CFO control representation required by section 404. These include:
1. a macro (big picture) level risk and control assessment linked to a company’s complete external disclosure process;
2. Increased rigorous documentation, prioritization and assessment of the sub-processes that supports SEC 10K and 10Q disclosures
3. Those looking for a "quick fix", an austere method to compliance, though with some significant legal and cost/benefit stipulations that need to be carefully