Essay sample - MBA Applied Managerial Finance 615

Ph.D.
Essay
Finance & Accounting
Pages 3 (753 words)
Download 0
The enactment of the Sarbanes-Oxley Act into law on July 30,2002 was in response to the various corporate and accounting malfeasance committed by various company such as Enron and WorldCom with the intent of restoring the public’s onfidence in America’s businesses. There…

Introduction

have reviewed the report that it did not contain any false information either by omission or by misleading and that the financial statement fairly reflects the true financial condition of the company (www.soxlaw.com a, 2003). In addition, the signing officers must have also reviewed the internal controls of the company. Section 404 of Sarbanes-Oxley Act on the other hand mandates that issuers are required to publish their annual reports “concerning the scope and adequacy of the internal control structure and procedures for financial reporting. This statement shall also assess the effectiveness of such internal controls and procedures” (www.soxlaw.com b, 2003).
In the case of Apex Printing, they have only complied with the Section 404 of Sarbanes-Oxley Act which is the requirement to publish their annual reports and its attending internal control structure but it is not yet certified by signing officers that the financial information that they will publish is materially true and accurate. In effect, it is like making known the company’s financial information without ensuring its accuracy which is susceptible to misrepresentation if not downright unethical.
The importance of being compliant in the Section 302 is not only to avoid criminal liability from regulatory agencies such as Security of Exchange Commission but also to become an ethical company. In an age of heightened public awareness against corporate malfeasance, it will not be right to skirt laws which are designed to protect the interest of the various shareholders of company from fraud. It will hurt the reputation of the company which has numerous repercussions from not being able to do an IPO to source external funding to non-patronage of its products or services in the market due to the suspicion of its customers that the company is a fraud.
Considering the various repercussion of non-compliance to Section 302 of Sarbanes Oxley Act, that ranges from a) non-launch of an initial public ...
Download paper
Not exactly what you need?

Related papers

Finance and Accounting Term Paper: Value of an MBA
Couple of years back, an MBA degree was considered as the final industry documentation. Yet the argument concerning the importance of the MBA has never been extra controversial. A number of reviewers argue that the saturation of MBAs, high tuition fees, a doubtful financial system, and commercial delinquency have stained the attraction of the degree. Others use untrustworthy confirmation to state…
10 pages (2510 words)
Finance - Managerial Accounting
Hence, managers can influence organizations’ cost behavior to a great extent. This paper will discuss capacity costs, committed fixed costs, and discretionary fixed costs in detail with reference to their current and future impact on business or society. Capacity costs Capacity costs can be simply referred to the fixed costs required for achieving predetermined level of production or meeting…
3 pages (753 words)
MSc Managerial Finance RESIT ASSIGNMENT JUNE 2013
Ratio analysis is considered to be a very accurate and reliable tool when it comes to analyzing and interpret the financial outlook and performance of an entity. The main reason for performing a ratio analysis is to quantify the results of the financial operations of an entity and analyze them in the light of financial performance of the prior year(s) in order to assess different aspects of the…
12 pages (3012 words)
MBA in Finance
Like most other individuals of my age, I had been directed towards completing tasks mechanically. Little had I known that I had been drawn towards engineering. However, to my disappointment, I could not make it to Embry Riddle University as I could not clear the engineering exam for that. Nevertheless, I was determined to move forward in life. Behind an ardent reader, I had been inspired by…
Managerial Finance and Financial Markets
commercial property can be used as an alternative investment during periods of high inflation, which is possible because of its low correlations with bonds and stocks. More so, the inclusion of commercial property in the portfolio will offer regular streams of income, for example in form of rent, which can be adjusted periodically thus shielding the investor from the effect of high inflation.…
6 pages (1506 words)
Managerial Finance Questions - B
The cost of capital is 10%. What is the project’s discounted payback period? Show your work. (Points : 20)…
2 pages (502 words)