AC 557 Unit 6 Assignment - Unit 6 Financial...

This preview shows page 1 - 4 out of 8 pages.

Unit 6: Financial Report/Transaction Cycle Internal ControlAssignmentCase analysis: PCAOB (A)In this case, you will look at the PCAOB, a group that was created by the Sarbanes-Oxley Act of 2002. You will look at their process in creating a new auditing standard on internal control and you will have an opportunity to look at the role of outside regulation and also inside regulation.In addition to the requirements for the analysis of a case study covered below, please specifically answer the questions at the end of the case.Required for the Analysis of a Case Study:Knowing how to analyze a case will help you attack virtually any business problem. A case study helps you learn by immersing you in real-world business issues – and makes you a decision maker. A case presents facts about a particular organization and you must focus on the most important facts and use the information to determine the best (of multiple alternatives) course(s) of action to deal with the problems they identify.Gloria DealAC 557-01NUnit 6 AssignmentProfessor: Bunny SchmidtSeptember 8th, 2013
Unit 6: Financial Report/Transaction Cycle Internal ControlIn this case study the main focus is on the PCAOB (A) which is Public Company Accounting Oversight Board. It discusses the origins of the PCAOB, appointing members, as well as the appointed member’s backgrounds. It then moves forth to talk about board’s earlier challenges, Auditing Standard No 2, Public’s Response, and finally deciding on the final standards. I will justify how the reporting requirements of the PCAOB reduce the chance of financial fraud, illustrate the responsibilities of an auditing firm to detect fraud during the audit process, recommend alternatives to the PCAOB, and lastly prepare a sample timeline for PCAOB reporting.PCAOB OriginsCreated by the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board or PCAOB requires auditors of U.S. public companies be subject to external and independent oversight. As well as a “provision requiring auditors to evaluate the effectiveness of companies’ audit committees” (Sharp Paine & Eric Bettcher, 2006).Appointing Members and their BackgroundOn October 2002 there were four appointed members and two of them were Goelzer and Charles D. Niemeier who were both accountants that had served at the SEC (Sharp Paine & Eric Bettcher, 2006). As for another one which was Bill Gradison who was a former congressman, mayor, and businessman. Leaving us lastly with Gillan who was general counsel at California Public Employees’ Retirement System (CalPERS). All four of these new members have had extensive law experience.
Unit 6: Financial Report/Transaction Cycle Internal ControlBoard’s Early Challenges

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture