Internal consistency

national HealthSouth scandal, new board members came to light, which included Robert May as an elected interim Chief Executive Officer and Joel Gordon as Chairman. The company continues to operate and has a tight hold on internal controls, has cooperated with individual and internal auditors frequently, and is moving forward toward a strong…

Prior to Sarbanes Oxley Act, the Securities Act of 1933 was the leading controlling mechanism. The 1933 Act requires that investors obtain appropriate financial information on securities that were offered for public sale. It also bans dishonesty, misrepresentations, and some other fraud in the transaction of securities. The Security Exchange Commission imposes the 1933 Act mandating corporation to have the stock and securities registered that are offered to the public. The registration…

Statutory means “of or related to statutes”, or what we otherwise call laws and regulations. Compliance means to comply with or adhere to. The term Statutory Compliance is most often used with organizations that are required to follow a lot of regulations. The purpose is to safeguard the employees and the enterprise from risks by the management on issues such as retirement benefits and taxation. In HR, statutory compliance refers to the legal framework within which organizations must operate,…

Here are the compliance concerns/questions that I think we need to investigate (You may have already done this): How did anyone know of Ms. Preston’s compliance link? Does the sales person on the account have a history of compliance issues? Who wrote the letter? The client or the Sales Rep.? Did Jeanne forward you the letter from the client? Who are the BRLI players invovlved? My questions for each BRLI employee involved would be (including Gail Colon): Confidentialy --Did you ever…

Also, it helped make sure that CEO’s and CFO’s made sure to document in writing of any financial disclosures, in order to make sure that they agreed with the law and were ethical. This practice helped make sure companies have strong and effective internal controls that would help remove any fraudulent and poor reporting practices with in financial statements (BOSTER, 2007). SOAX…

2015 Impact of Sarbanes-Oxley Act The Act requires all financial reports to comprise an internal control report. This is intended to display that not only are the corporation's financial facts accurate, but the organization has self-assurance in them as satisfactory controls are in place to safety measure economic data. Year-end financial reports must include a valuation of the efficiency of the internal controls. The issuer's auditing organization is enforced to attest to that evaluation.…

As long as the IT Audit director meets AT §101.51, they should have the ability to reject any change. If the IT audit director can provide sufficient evidence to prove a reasonable basis for wanting to delay implementation of a change, she should have that power. With that said, there needs to be a policy in place to govern changes to production. Changes need to be properly evaluated and authorized before implemented. This is not an appropriately designed control procedure. The IT Audit Director…

In 2002 Congress passed the Sarbanes-Oxley Act due to issues related to company executives falsely reporting financial information and practicing poor business ethics. This was passed due to lack of confidence in corporate America, and the demand from people to hold executives accountable for their decisions (Ferrell, Fraedrich, Ferrell, 2015). HealthSouth, one of the largest rehabilitation healthcare providers, was the first company charged under the Sarbanes-Oxley Act. Richard Scrushy and…

The Public Company Accounting Oversight Board (PCAOB) is a nonprofit organization that regulates auditors of publicly traded companies. PCAOB was organized as a result of the making of the Sarbanes-Oxley Act of 2002. PCAOB purpose is to ensure that the auditor is following a set of strict guidelines on the protection for investors and other stakeholders of public companies. PCAOB vision is to be a "model regulatory organization" that strives for new ideals without maximizing the cost. PCAOB is…

WorldCom-type accounting scandals. The most important part of this Act is that it provides a new nonprofit company responsible for the inspection and sanction of audit firms; this is "the Public Company Accounting Oversight Board”. SOX led to a greater internal control of financial information, and an increase of independence among the boards, committees, and directors. Also, new requirements were imposed such as reports and audits. “The old ways weren’t working. That idea lit the corporate…