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Why is Section 404 of the Sarbanes Oxley Act controversial?
"Section 404 is the most controversial provision of Sarbanes-Oxley. It requires all public companies to have internal procedures in place to prevent errors and fraud in the company's financial statements, Section 404 also requires outside auditors to assess the effectiveness of those internal controls. The Council believes Section 404 is a core element of SOX. It plays a vital role in ensuring both high quality financial reporting and investor confidence in U.S. capital markets. Any company tapping public markets to raise capital should be required to meet certain minimal standards of good corporate governance. Those standards should include strong internal controls that are subject to meaningful review and attestation by independent auditors. However, the Securities and Exchange Commission (SEC) exempted small public companies (defined as those with a market capitalization of less than $75 million) from the auditor-attestation requirement. In September 2009, the SEC announced the exemption would end next June. But in 11-4-09 House Committee on Financial Services approved an amendment to the Investor Protection Act that would permanently exempt companies with less than $75 million in market capitalization from the auditor attestation requirement. The turmoil is that the council believes that smaller companies have had ample time to prepare to comply with this crucial provision of Sarbanes-Oxley. Also, the need for strong internal controls is particularly important for smaller public companies, where much of financial reporting fraud has occurred."
Need forms to close IRA?
Most firms would require a distribution form to close out/cash an IRA. If you are transferring it directly to another firm, then you would need the contra firms paperwork (filled out by receiving firm).
What are the main reasons for the development of accounting regulations?
Accounting regulations were created to ensure there was a standard for reporting. If there was no standard, then no one would be able to truly assess whether a business was profitable or not.
Acca Past Sample Questions and Answers of Financial Management?
true or false, managers should under no conditions take actions that their firms risk relative to the market, regqardless of how much those actions would increase the firms expected rate return.
What is the first account number used in the liabilities division?
This is not public information. It would lead to the identity of a person and is against the banking regulations.
Suggestions for information technology?
I would suggest a review of the OSI Model, the PCI and Sarbanes Oxley requirements ad well as a introductory review of the requirements and knowledge base for a CCNA and CCNP.
What are the CEO and CFO required to do under Sarbanes-Oxley Act?
Section 302(a) of the New Law required the SEC to adopt a rule which would require a CEO and CFO of any company that files annual or quarterly reports with the SEC to provide certifications in each annual and quarterly report.
Are sign regulations related more to zoning regulations or building regulations?
It can depend. Usually Zoniing regulations would cover the display of the signs, but building regulations would address the way they are constructed and hung or placed on the building.
What would happen if there was an increase in the number of firms?
Pushes it out
Do perfectly competitive firms advertise?
Perfectly competitive firms would not advertise as advertising would serve no purpose. A market that is perfectly competitive exists only in theory.
Why would a firm want to incur transaction cost?
Firms would not want to incur transactions costs. In fact, firms would much prefer to have zero transactions costs, since that would maximise their profits.
Are there rental management firms that would search for vacation rentals for me?
There are rental management firms that would search for vacation rentals for you. There such internet based firms are Vacation Rentals by Owner (www.vrbo.com/), Vacation Apartments.Com (www.vacation-apartments.com/) and Vacation Rentals.Com (www.vacationrentals.com/).
Importance of business laws in India?
Business law refers to the laws which are applied to business entities such as partnerships and corporations. These are used as reference when putting up businesses whether big or small - from sole proprietorship to corporation. Business laws specify how different business can be set up, how taxes apply to them, registrations, documentations and requirements; define different terms pertaining to business, making by-laws, and articles of organization among many others. These also provide the authoritarian schemes on how commerce should be conducted. Every country has its own regulations, laws and regulatory bodies or agencies governing the manufacturing, sales, marketing and distribution of products within the country. Laws and regulations are intentionally made for human beings and other institutions as a guide to bring order and sanity into the society. Because of this, it is likely that their application will impact upon the plans of firms; their effects on a given firm are also inevitable. An attempt would be made to confer specified regulations and laws with particular reference to aviation and airline, environmental regulations, stock market regulations, banking regulations, research (and development) co-operation regulations, stock options regulations, labour regulations, intellectual property and social security regulations industry by industry and effects on the plans of firms where necessary.
Why is Section 404 of the Sarbanes Oxley Act controversial?
"Section 404 is the most controversial provision of Sarbanes-Oxley. It requires all public companies to have internal procedures in place to prevent errors and fraud in the company's financial statements, Section 404 also requires outside auditors to assess the effectiveness of those internal controls. The Council believes Section 404 is a core element of SOX. It plays a vital role in ensuring both high quality financial reporting and investor confidence in U.S. capital markets. Any company tapping public markets to raise capital should be required to meet certain minimal standards of good corporate governance. Those standards should include strong internal controls that are subject to meaningful review and attestation by independent auditors. However, the Securities and Exchange Commission (SEC) exempted small public companies (defined as those with a market capitalization of less than $75 million) from the auditor-attestation requirement. In September 2009, the SEC announced the exemption would end next June. But in 11-4-09 House Committee on Financial Services approved an amendment to the Investor Protection Act that would permanently exempt companies with less than $75 million in market capitalization from the auditor attestation requirement. The turmoil is that the council believes that smaller companies have had ample time to prepare to comply with this crucial provision of Sarbanes-Oxley. Also, the need for strong internal controls is particularly important for smaller public companies, where much of financial reporting fraud has occurred."
Why is Section 404 of the Sarbanes-Oxley Act controversial?
"Section 404 is the most controversial provision of Sarbanes-Oxley. It requires all public companies to have internal procedures in place to prevent errors and fraud in the company's financial statements, Section 404 also requires outside auditors to assess the effectiveness of those internal controls. The Council believes Section 404 is a core element of SOX. It plays a vital role in ensuring both high quality financial reporting and investor confidence in U.S. capital markets. Any company tapping public markets to raise capital should be required to meet certain minimal standards of good corporate governance. Those standards should include strong internal controls that are subject to meaningful review and attestation by independent auditors. However, the Securities and Exchange Commission (SEC) exempted small public companies (defined as those with a market capitalization of less than $75 million) from the auditor-attestation requirement. In September 2009, the SEC announced the exemption would end next June. But in 11-4-09 House Committee on Financial Services approved an amendment to the Investor Protection Act that would permanently exempt companies with less than $75 million in market capitalization from the auditor attestation requirement. The turmoil is that the council believes that smaller companies have had ample time to prepare to comply with this crucial provision of Sarbanes-Oxley. Also, the need for strong internal controls is particularly important for smaller public companies, where much of financial reporting fraud has occurred."
Who would finance you to build an amusement park?
Investment firms.
Are there some situations in which such regulations would be more appropriated than others?
Are there some situations in which such regulations would be more appropriate than others?
