Public vs. Private Company Controls Standards
Facts taken from problem 5.64 in your textbook.
Your long-time client, Central Office Supply, has been rapidly
expanding, and the board of directors is considering taking the company
public. CEO Terry Puckett has heard that costs of operating a public
company have increased significantly as a result of the Sarbanes–Oxley
Act. Puckett is particularly concerned with reports that audit fees have
doubled because of internal control provisions of the act and PCAOB
Auditing Standard No. 2201. Puckett has asked you to explain the
possible effects on the audit of complying with the requirements of
Sarbanes–Oxley.
Required:
Outline for yourself your thoughts on the changes in the company’s
responsibilities for internal control and changes in the audit due to
Sarbanes–Oxley and PCAOB Auditing Standard No. 2201. Then use your
outline to create:
- a PowerPoint presentation that summarizes your findings for Puckett to educate him on the requirements, and
- a Word document with your talking points that elaborate on the PowerPoint slides.
If you have the capability to do so, please combine the
PowerPoint slides and the Word document into one .pdf file to turn in to
your instructor. If not, two files are acceptable. Be sure to use the CSU-Global Guide to Writing and APA
as a guide to format your documents. Your combined documents should be
at least 4 pages in length, but no more than 6 pages in length, not
including the title page and reference page. Outside academic resources
not required, but they would likely assist with your analysis. If they
are used, citations must be provided.
