Wednesday, June 5, 2019

Heritage Doll company Essay Example for Free

Heritage Doll company EssayI tot with Apex to attain full compliance with SOX. As you know about Apex is private company and will be seeking for new outer funding to expansion into a new segment of the printing sector therefore, the new investors are indispensabilityed for them because they dupe to access capital market to rise money for the expansion to a lot invest in equipment as well as substract inventory and adding more promotional costs thus they have to going universals and this is a time decision for them because it will be forever changes how Apex goes through doing their business so a Initial Public oblation (IPO) has access to more and deeper of information, sources of capital than a private company thus they needed the 1st thing to align with SOX by going to macrocosm. Apex need to assess their readiness for stable sustain as a public company by requires all management to be prepare to meet shareowner and market expectations and address ongoing compliance an d regulatory requirements, operational effectiveness, risk management, periodic reporting and investor relations. The one of preparation if Apex established the necessary pecuniary statement integrity through the implementation of effective internal control system to support managements reporting obligations as a public company they needed to comply with the Sarbanes-Oxley Act 2002 (SOX) for successful to going public.Sarbanes-Oxley Act 2002 (SOX)According to PricewaterhouseCoopers mentioned about SOX that it is current regulatory and disclosure issues if company will veer to IPO should consider the followingInternal Controls Sarbanes-Oxley requires a management representatives are CEO and CFO to provide certain certifications in periodic with the Securities and exchange heraldic bearing (SEC) Audit committee Sarbanes-Oxley requires public company to have set up audit committee by one of team have to expert in financial skill. Board of Director Require external expert= member fro m other company. Auditor relationship Require company have to clarify their living relationship with their outside audit firm. Code of ethics Requires a code of ethics for senior financial officer. Loan to company executives Prohibits public company from maintaining assurance in the form of a personal loan.One of the advantages when they focus on SOX404 is that it forces company to think pro-actively, identify risks, document an assess existing controls and then program new preventive or detective controls. Moreover, Connor from Corporate Responsibility Magazine mentioned that SOX has benefited their company because of the recently proposed management guidance from the U.S. Securities and Exchange Commission (SEC) and the Public company Accounting Oversight Boards (PCAOB) to improve efficiency and quality over the long term.Therefore, Apex needed to comply with SOX by going to public aimed to expansion business to other operation and adding more investor. This benefit for Apex t o comply this standards.ReferencesConnors, T. SOX Benefits. Retrieved from http//www.thecro.com/node/400Medeiros, M. (2013). Preparing for SOX 404(b) and an IPO. Retrieved from http//www.wolfandco.com/solutions/insights/602-preparing_for_sox_404_b_and_an_ipo/viewPricewaterhouseCoopers. Roadmap for an IPO. Retrieved from http//www.pwc.com/us/en/transaction-services/assets/roadmap-for-an-ipo-a-guide-to-going-public.pdf

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.