Financial Accounting > ESSAY > ACC 599 Assignment 2: Accounting and Auditing Enforcement. Strayer University (All)

ACC 599 Assignment 2: Accounting and Auditing Enforcement. Strayer University

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ACC 599 Assignment 2: Accounting and Auditing Enforcement. Strayer University. Bedard and Graham (2011) argued that accounting involves crucial analysis of the performance of a firm or an organization ... . Its aim is to ensure that the financial records meet various requirements that a company is obliged to offer. The compliances like tax payments are critical as it avoids tax evasion evils. Moreover, it allows a firm to provide records that allow the security exchange to assign accurate values to shares of a company. The issues of overpricing shares reduce, thus allowing the shareholders to secure their investments in fraudulent activities. In this connection, the US Congress passed a law known as Sarbanes-Oxley Act in 2002 with the aim to protect shareholders from unscrupulous financial reports of publicly traded firms. This paper will discuss Sarbanes-Oxley Act and its applications to companies about consequences of its violation as seen in Grace Social Services Incorporation. According to second title section 302 of the SOX Act of 2002, there is a need for the executive officers and managers of publicly traded companies to append their signatures on the financial reports that they present to the public and their shareholders. It requires that these agents should scrutinize financial reports before affixing their signature as a proof of their authenticity (Carcello and Nagy, 2014). Additionally the audit committee should have independent directors having no affiliations with any subsidiary of the firm. These measures ensure that the shareholders receive an adequate report concerning their investments. Not-for-profit health care institutions receive their finances from charitable donors and tax-exempt bondholders. These persons too have interests that their donations receive adequate handling to achieve the purpose for which they donate such funds. In this view, donors have similar interests in the promotion of health like the shareholders have for the success of their [Show More]

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