ACCT 105 American Public University System The Sarbanes Oxley Act Paper Assignment Instructions Write a 500 – 750 word paper on the following topic: Compar

ACCT 105 American Public University System The Sarbanes Oxley Act Paper Assignment Instructions
Write a 500 – 750 word paper on the following topic:
Compare and contrast the views of management and accountants regarding the changes required by the Sarbanes-Oxley Act on internal controls and how these changes have affected corporations, accounting firms, and investors.
Your paper must be formatted according to APA 6th edition guidelines, and you need to use at least one external reference. Save your file as “LastnameFirstinitial-ACCT105-7.”
Submit your work by midnight ET on Day 7 (Sunday).
Note that your attached paper will automatically be submitted to Turnitin, and an Originality Report should be sent back to the classroom within around 15 minutes. The Originality report does not actually recommend changes. It does point out where you may need to add a citation or quotation marks (if not already cited). Once you use it a few times, you will appreciate this tool, as it will assist you in improving quality and content, as well as avoid plagiarism. Your goal is to keep direct quotations to a minimum and to make sure that you do not just cut and paste material. Ensure that all your references are cited. A report with a similarity index less than 25% is acceptable for undergraduate level work.

Your paper will be evaluated according to the Writing Assignment Grading Rubric shown below. To maximize your grade, be sure to use the proper organization (intro, body, conclusion) and follow APA style. Your paper should have a title page and reference page, but you do not need an abstract for this assignment. See the PowerPoint presentation attached for APA assistance.

Guidelines

Writing Assignment Grading Criteria

Content (60%)

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Response demonstrates a clear understanding of the key elements of assignment questions.

•

Response thoroughly covers the elements in a substantive manner.

•

Response demonstrates critical thinking and analysis.

•

Content is complete and accurate.

•

Introduction and conclusion provide adequate information on the given topic.

Organization (20%)

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Paper structure is clear and easy to follow.

•

Ideas flow in a logical sequence.

•

Introduction provides a sound introduction to the topic and previews major points.

•

Paragraph transitions are logical and support the flow of thought throughout the paper.

•

The conclusion thoroughly reviews the major points.

Writing Style, Grammar, APA

SARBANES-OXLEY

ACT

2002

A Guide To The Sarbanes-Oxley Act

MENU

Home

Introduction

Compliance

Section 302

Section 401

Section 404

Section 409

Section 802

Miscellaneous

Humor

Contact Us

Note: This website may be available for sale. To contact us use soxhelp@soxlaw.com

EXTERNAL
RESOURCES

The Sarbanes-Oxley Compliance Toolkit contains various downloadable resources to assist with the compliance exercise. These include guides, presentations and audit checklists.

The Sarbanes-Oxley Forum is an interactive chat type resource which enables the free exchange of information and opinion

Also, the AICPA is a relevant associations for CPAs.

The Sarbanes-Oxley Act

The Sarbanes-Oxley Act of 2002 is mandatory. ALL organizations, large and small, MUST comply.

This website is intended to assist and guide. It provides information, and identifies resources, to help ensure successful audit, and management. Whether you are entirely new to the Sarbanes-Oxley legislation, or whether you have an established strategy, this portal should hopefully prove to be of substantial value

Introduction

The legislation came into force in 2002 and introduced major changes to the regulation of financial practice and corporate governance. Named after Senator Paul Sarbanes and Representative Michael Oxley, who were its main architects, it also set a number of deadlines for compliance.

The Sarbanes-Oxley Act is arranged into eleven titles. As far as compliance is concerned, the most important sections within these are often considered to be 302, 401, 404, 409, 802 and 906.

An over-arching public company accounting board was also established by the act, which was introduced amidst a host of publicity.

Sarbanes-Oxley Compliance

Compliance with the legislation need not be a daunting task. Like every other regulatory requirement, it should be addressed methodically, via proper analysis and study.

Also like other regulatory requirements, some sections of the act are more pertinent to compliance than others. To assist those seeking to meet the demands of this act, the following pages cover the key Sarbanes-Oxley sections:

Sarbanes-Oxley Section 302
Sarbanes-Oxley Section 401
Sarbanes-Oxley Section 404
Sarbanes-Oxley Section 409
Sarbanes-Oxley Section 802

Miscellaneous

Having studied the above pages, even if you are considering using an external consultant or legal expert, it is well worth taking some basic steps to enhance your position immediately. This not only demonstrates due diligence, but may well reduce the consultancy costs themselves.

One area that perhaps falls into the category is security. In many respects security underpins the requirements of the Sarbanes-Oxley Act. It is therefore important to quickly establish a credible and detailed security policy, which can often be done readily via off the shelf packages.

Finally, perhaps the most important statement on the entire web site: don’t put off until tomorrow what can be done today! With other legislation and regulation we have seen far too often organizations leave compliance until the last few days, and subsequently suffer adverse consequences.
Format (20%)

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Sentences are well constructed, complete, clear, and concise.

•

Words used are specific an unambiguous.

•

The tone is appropriate to the content and assignment.

•

Grammar, spelling, and punctuation are correct.

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APA guidelines (6th edition) are followed, such as headers, citations, references, etc.

•

Effective use of aids such as sections, summaries, table of contents, indices, and appendices (if appropriate). Accounting Principles:
A Business Perspective,
Financial Accounting (Chapters 9 – 18)
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Table of Contents
9 Receivables and payables…………………………………………………………………..11
9.1 Learning objectives……………………………………………………………………………………………. 11
9.2 A career in litigation support………………………………………………………………………………. 11
9.3 Accounts receivable…………………………………………………………………………………………… 13
9.4 Current liabilities……………………………………………………………………………………………… 26
9.5 Notes receivable and notes payable……………………………………………………………………..35
9.6 Short-term financing through notes payable………………………………………………………..42
9.7 Analyzing and using the financial results—Accounts receivable turnover………………..45
9.8 Key terms………………………………………………………………………………………………………… 50
9.9 Self test……………………………………………………………………………………………………………. 52
9.10 Questions……………………………………………………………………………………………………….. 54
9.11 Exercises………………………………………………………………………………………………………… 56
9.12 Problems………………………………………………………………………………………………………… 58
9.13 Alternate problems………………………………………………………………………………………….. 61
9.14 Beyond the numbers—Critical thinking………………………………………………………………63
9.15 Using the Internet—A view of the real world……………………………………………………….65
9.16 Answers to self test………………………………………………………………………………………….. 66
10 Property, plant, and equipment………………………………………………………..68
10.1 Learning objectives………………………………………………………………………………………….. 68
10.2 A company accountant’s role in managing plant assets………………………………………..68
10.3 Nature of plant assets……………………………………………………………………………………… 69
10.4 Initial recording of plant assets………………………………………………………………………….71
10.5 Depreciation of plant assets………………………………………………………………………………77
10.6 Subsequent expenditures (capital and revenue) on assets……………………………………90
10.7 Subsidiary records used to control plant assets…………………………………………………..94
10.8 Analyzing and using the financial results—Rate of return on operating assets………..97
10.9 Key terms……………………………………………………………………………………………………… 101
10.10 Self-test………………………………………………………………………………………………………. 102
10.11 Exercises……………………………………………………………………………………………………… 106
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10.12 Problems…………………………………………………………………………………………………….. 109
10.13 Alternate problems……………………………………………………………………………………….. 112
10.14 Beyond the numbers—Critical thinking……………………………………………………………115
10.15 Using the Internet—A view of the real world…………………………………………………….118
10.16 Answers to self-test………………………………………………………………………………………. 118
11 Plant asset disposals, natural resources, and intangible assets……………..120
11.1 Learning objectives…………………………………………………………………………………………. 120
11.2 A company accountant’s role in measuring intangibles……………………………………….120
11.3 Disposal of plant assets…………………………………………………………………………………… 122
11.4 Sale of plant assets…………………………………………………………………………………………. 122
11.5 Natural resources…………………………………………………………………………………………… 133
11.6 Intangible assets…………………………………………………………………………………………….. 138
11.7 Analyzing and using the financial results—Total assets turnover………………………….147
11.8 Key terms………………………………………………………………………………………………………. 155
11.9 Self-test…………………………………………………………………………………………………………. 156
11.10 Problems……………………………………………………………………………………………………… 162
11.11 Alternate problems……………………………………………………………………………………….. 166
11.12 Beyond the numbers-Critical thinking……………………………………………………………..170
11.13 Using the Internet—A view of the real world…………………………………………………….173
11.14 Answers to self-test……………………………………………………………………………………….. 173
12 Stockholders’ equity: Classes of capital stock……………………………………..175
12.1 Learning objectives…………………………………………………………………………………………. 175
12.2 The accountant as a corporate treasurer……………………………………………………………175
12.3 The corporation……………………………………………………………………………………………… 176
12.4 Analyzing and using the financial results—Return on average common stockholders’
equity……………………………………………………………………………………………………………………… 202
12.5 Key Terms…………………………………………………………………………………………………….. 209
12.6 Self-test………………………………………………………………………………………………………… 212
12.7 Exercises……………………………………………………………………………………………………….. 215
12.8 Problems………………………………………………………………………………………………………. 216
12.9 Alternate problems……………………………………………………………………………………….. 220
12.10 Beyond the numbers—Critical thinking…………………………………………………………..225
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12.11 Using the Internet—A view of the real world…………………………………………………….227
12.12 Answers to self-test………………………………………………………………………………………. 228
13 Corporations: Paid-in capital, retained earnings, dividends, and treasury
stock…………………………………………………………………………………………………. 230
13.1 Learning objectives………………………………………………………………………………………… 230
13.2 The accountant as a financial analyst……………………………………………………………….230
13.3 Paid-in (or contributed) capital………………………………………………………………………..231
13.4 Paid-in capital—Stock dividends……………………………………………………………………..232
13.5 Paid-in capital—Treasury stock transactions…………………………………………………….233
13.6 Paid-in capital—Donations……………………………………………………………………………..233
13.7 Retained earnings………………………………………………………………………………………….. 233
13.8 Paid-in capital and retained earnings on the balance sheet…………………………………234
13.9 Retained earnings appropriations……………………………………………………………………244
13.10 Statement of retained earnings………………………………………………………………………246
13.11 Statement of stockholders’ equity……………………………………………………………………247
13.12 Treasury stock…………………………………………………………………………………………….. 248
13.13 Net income inclusions and exclusions……………………………………………………………..253
13.14 Analyzing and using the financial results—Earnings per share and price-earnings
ratio………………………………………………………………………………………………………………………… 259
13.15 Key terms……………………………………………………………………………………………………. 265
13.16 Self-test………………………………………………………………………………………………………. 267
13.17 Exercises……………………………………………………………………………………………………… 271
13.18 Problems…………………………………………………………………………………………………….. 273
13.19 Alternate problems………………………………………………………………………………………. 278
13.20 Beyond the numbers—Critical thinking………………………………………………………….282
13.21 Using the Internet—A view of the real world……………………………………………………286
13.22 Answers to self-test……………………………………………………………………………………… 286
14 Stock investments…………………………………………………………………………288
14.1 Learning objectives………………………………………………………………………………………… 288
14.2 The role of accountants in business acquisitions……………………………………………….288
14.3 Cost and equity methods……………………………………………………………………………….. 290
14.4 Accounting for short-term stock investments and for long-term stock investments of
less than 20 percent …………………………………………………………………………………………………. 291
6
14.5 Cost method for short-term investments and for long-term investments of less than
20 percent ………………………………………………………………………………………………………………. 291
14.6 The equity method for long-term investments of between 20 percent and 50 percent
………………………………………………………………………………………………………………………………. 297
14.7 Reporting for stock investments of more than 50 percent ………………………………….298
14.8 Consolidated balance sheet at time of acquisition……………………………………………..302
14.9 Accounting for income, losses, and dividends of a subsidiary……………………………..308
14.10 Consolidated financial statements at a date after acquisition…………………………….309
14.11 Uses and limitations of consolidated statements………………………………………………313
14.12 Analyzing and using the financial results—Dividend yield on common stock and
payout ratios……………………………………………………………………………………………………………. 314
14.13 Key terms…………………………………………………………………………………………………….. 321
14.14 Self-test………………………………………………………………………………………………………. 322
14.15 Exercises…………………………………………………………………………………………………….. 325
14.16 Problems…………………………………………………………………………………………………….. 327
14.17 Alternate problems……………………………………………………………………………………….. 331
14.18 Beyond the numbers—Critical thinking…………………………………………………………..334
14.19 Using the Internet—A view of the real world……………………………………………………336
14.20 Answers to self-test……………………………………………………………………………………… 336
15 Long-term financing: Bonds……………………………………………………………337
15.1 Learning objectives………………………………………………………………………………………… 337
15.2 The accountant’s role in financial institutions…………………………………………………..338
15.3 Bonds payable………………………………………………………………………………………………. 339
15.4 Comparison with stock…………………………………………………………………………………… 340
15.5 Selling (issuing) bonds…………………………………………………………………………………… 340
15.6 Bond prices and interest rates…………………………………………………………………………348
15.7 Redeeming bonds payable………………………………………………………………………………. 359
15.8 Analyzing and using the financial results—Times interest earned ratio………………..365
15.9 Appendix: Future value and present value………………………………………………………..370
15.10 Demonstration problem……………………………………………………………………………….. 377
15.11 Solution to demonstration problem…………………………………………………………………377
15.12 Key terms……………………………………………………………………………………………………. 378
15.13 Self-test………………………………………………………………………………………………………. 380
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15.14 Exercises…………………………………………………………………………………………………….. 383
15.15 Problems…………………………………………………………………………………………………….. 385
15.16 Alternate problems………………………………………………………………………………………. 387
15.17 Beyond the numbers—Critical thinking…………………………………………………………..389
15.18 Using the Internet—A view of the real world……………………………………………………392
15.19 Answers to self-test………………………………………………………………………………………. 393
16 Analysis using the statement of cash flows………………………………………..394
16.1 Learning objectives………………………………………………………………………………………… 394
16.2 A career in external auditing……………………………………………………………………………394
16.3 Purposes of the statement of cash flows………………………………………
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