ACC 290 Week 5

Individual Week Five Exercises

Resource: Ch. 57 of Financial Accounting

Complete Exercises BE51, BE52, BE6-5, BE6-7, and BE7-4, 7-5, and 7-6.

Answer the following summary question: What is the role of the Sarbanes-Oxley Act of 2002 in relation to the types of internal controls used by corporations such as those illustrated in Exercises 7-4, 7-5, and 7-6?

Submit as either a Microsoft Excel or Word document.

Learning Team Learning Team Reflection

Discuss the following:

In the wake of all the accounting scandals over the past several years, how has the Sarbanes-Oxley Act (SOX) of 2002 affected the practice of accounting? What is the role of internal controls in complying with SOX (2002)?

Write a 350- to 500-word summary of your Learning Teams discussion.

Learning Team Financial Reporting Problem, Part 2

Access the Internet to acquire a copy of the most recent annual report for the publicly traded company used to complete the Financial Reporting Problem, Part 1 assignment due in Week Four.

Analyze the information contained in the companys balance sheet and income statement to answer the following questions:

Are the assets included under the companys current assets listed in the proper order? Explain your answer.

How are the companys assets classified?

What are cash equivalents?

What are the companys total current liabilities at the end of its most recent annual reporting period?

What are the companys total current liabilities at the end of the previous annual reporting period?

Considering all the information you have gathered, why might this information be important to potential creditors, investors, and employees?

Summarize the analysis in a 1,050-1,400 word paper in a Microsoft Word document.

Include a copy of the companys balance sheet and income statement.

Format your paper and presentation consistent with APA guidelines.

Discussion Questions

How would you describe the key internal controls that should be in place to protect cash in a cash rich environment such as a merchandiser?

Using examples of weak internal controls in an organization you are familiar with, how would you improve those controls to better safeguard a companys assets? Would these internal controls differ with a different type of business?

What is the Sarbanes-Oxley Act of 2002? Why did it come about? How have the new rules in the Sarbanes-Oxley Act of 2002 affected the way accounting departments and companies operate? What are some positive outcomes from these changes?