ACC 375 Week

Team Assignment: Sarbanes-Oxley Act Training Manual

Your accounting firm has been hired to consult a privately held company. The company is considering becoming public in the near future. As part of preparing for this transition, they have asked your firm to create training materials they can use to ensure their company aligns to the Sarbanes-Oxley Act. At this point, the company is unsure of what this act really means and how it might affect them.

Create a 1,050- to 1,400-word training manual to introduce the Sarbanes-Oxley Act and describe its implications to the company. Create your training manual in the Microsoft Office format of your choice, such as Word, Publisher, or PowerPoint. If you opt to use PowerPoint, include comprehensive speaker notes.

Research using your textbooks and at least two outside sources.

Include the following information:

The reasons the act was brought forth and the role of accounting in making ethical decisions

The current U.S. accounting rule-making bodies (FASB, SEC and PCAOB) and their influence regarding this act

The documentation standards that the company must adopt to be in compliance with the act

The changes required to hold management accountable for ensuring that internal controls function properly

Format your assignment consistent with APA guidelines

Discussion Questions

Explain the differences among the Financial Accounting Standards Board (FASB), the Securities and Exchange Commission (SEC), and the Public Company Accounting Oversight Board (PCAOB).

What concepts of independence and integrity mean to the accounting profession?

According to the AICPA Code of Professional Conduct, what does it mean to serve the public interest? Provide a recent example from a news article addressing an instance in which someone was working in their self-interest rather than the public interest.

The SEC and the PCAOB place restrictions on 14 different types of non-audit services in an effort to guarantee the continued independence of accounting firms. What are three of these services? Why might there be a restriction imposed?

How has the Sarbanes-Oxley Act affected professional independence among accountants?

Distinguish between the ethical standards of CPAs and non-CPAs. Which services might CPAs be able to perform that non-CPAs are unable to perform?