Assignment 1: Impact of the Sarbanes-Oxley Act (SOX) (Solved)
accounting
Description
Assignment 1: Impact of the Sarbanes-Oxley Act (SOX)
Due Week 3 and worth 280 points
Assume that you are a CEO of a medium-sized company that needs a significant influx of cash for several expansion projects. As the CEO, you must determine whether your company should remain private or go public. Some companies postpone going public due to the unpredictability of economic and market conditions. Consider the ramifications of both alternatives. Construct an argument for and against going public. Before providing your response, review the guidelines and regulations associated with going public by visiting Small Business and the SEC located at
Use the Internet to research SOX law,
Write a four to five (4-5) page paper in which you:
1. Outline
three (3) ways in which your medium-sized private company may benefit from
going public, providing a rationale for each.
2. Create
an argument that the same goals may be achieved if the company remains a
privately held entity. Provide support for your argument.
3. When a
company decides to go public, it can typically obtain capital by issuing stocks
or bonds. Suggest four (4) leading financial ratios that will be evaluated and
how each will impact the company’s decision to obtain expansion funds. Determine
whether the results of the ratios would alter the decision to go public.
4. By
researching the results of SOX compliance surveys, assess the financial impact
that SOX might have on your company if it decides to go public. Considering the
impact of SOX compliance, take a position as to whether your company can
overcome the challenges posed by SOX compliance if the decision is to go
public. Based on your research, support your decision by identifying the
potential advantages and disadvantages that SOX may have on your company.
Provide specific examples.
5. Make a
recommendation as the CEO regarding the alternative (i.e., going public or
staying private) that will best support the company’s expansion goals. Support
your position.
6. Use at
least four (4) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify
as academic resources.
Your assignment must follow these formatting requirements:
·
Be typed, double spaced, using Times New Roman font (size 12),
with one-inch margins on all sides; citations and references must follow APA or
school-specific format. Check with your professor for any additional
instructions.
·
Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the date. The cover
page and the reference page are not included in the required assignment page
length.
The specific course learning outcomes associated with this
assignment are:
·
Analyze financial reports, prepare analysis, and draw
conclusions based on the financial analysis.
·
Calculate and interpret various financial and operating ratios
used in business.
·
Use technology and information resources to research issues in
accounting management.
·
Write clearly and concisely about accounting management using
proper writing mechanics.
Grading
for this assignment will be based on answer quality, logic / organization of
the paper, and language and writing skills, using the following rubric.
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Points: 280 |
Assignment 1: Impact of the Sarbanes-Oxley Act (SOX) |
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|
Criteria |
Unacceptable Below
70% F |
Fair 70-79%
C |
Proficient 80-89%
B |
Exemplary 90-100%
A |
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1. Outline three (3) ways in which your medium-sized private
company may benefit from going public, providing a rationale for each. Weight: 15% |
Did not submit or incompletely
outlined three (3) ways in which your medium-sized private company
may benefit from going public; did not submit or incompletely provided a
rationale for each. |
Partially outlined three (3)
ways in which your medium-sized private company may benefit from going
public; partially provided a rationale for each. |
Satisfactorily outlined three (3)
ways in which your medium-sized private company may benefit from going
public; satisfactorily provided a rationale for each. |
Thoroughly outlined three (3) ways
in which your medium-sized private company may benefit from going public;
thoroughly provided a rationale for each. |
|
2. Create an argument that the same goals may be achieved if
the company remains a privately held entity. Provide support for your argument. |
Did not submit or incompletely
created an argument that the same goals may be achieved if the
company remains a privately held entity. Did not submit or incompletely
provided support for your argument. |
Partially created an argument
that the same goals may be achieved if the company remains a privately held
entity. Partially provided support for your argument. |
Satisfactorily created an argument
that the same goals may be achieved if the company remains a privately held
entity. Satisfactorily provided support for your argument. |
Thoroughly created an argument
that the same goals may be achieved if the company remains a privately held
entity. Thoroughly provided support for your argument. |
|
3. Suggest four (4) leading financial ratios that will be
evaluated and how each will impact the company’s decision to obtain expansion
funds. Determine whether the results of the ratios would alter the decision
to go public. Weight: 15% |
Did not submit or incompletely
suggested four (4) leading financial ratios that will be evaluated
and how each will impact the company’s decision to obtain expansion funds.
Did not submit or incompletely determined whether the results of the ratios
would alter the decision to go public. |
Partially suggested four (4)
leading financial ratios that will be evaluated and how each will impact the
company’s decision to obtain expansion funds. Partially determined whether
the results of the ratios would alter the decision to go public. |
Satisfactorily suggested four (4)
leading financial ratios that will be evaluated and how each will impact the
company’s decision to obtain expansion funds. Satisfactorily determined
whether the results of the ratios would alter the decision to go public. |
Thoroughly suggested four (4)
leading financial ratios that will be evaluated and how each will impact the
company’s decision to obtain expansion funds. Thoroughly determined whether
the results of the ratios would alter the decision to go public. |
|
4. By researching the results of SOX compliance surveys,
assess the financial impact that SOX might have on your company if it decides
to go public. Considering the impact of SOX compliance, take a position as to
whether your company can overcome the challenges posed by SOX compliance if
the decision is to go public. Based on your research, support your decision
by identifying the potential advantages and disadvantages that SOX may have
on your company. Provide specific examples. Weight: 20% |
Did not submit or incompletely
assessed the financial impact that SOX might have on your company
if it decides to go public, by researching the results of SOX compliance
surveys. Did not submit or incompletely took a position as to whether your
company can overcome the challenges posed by SOX compliance if the decision
is to go public, considering the impact of SOX compliance. Did not submit or
incompletely supported your decision by identifying the potential advantages
and disadvantages that SOX may have on your company, based on your research.
Did not submit or incompletely provided specific examples. |
Partially assessed the financial
impact that SOX might have on your company if it decides to go public, by
researching the results of SOX compliance surveys. Partially took a position
as to whether your company can overcome the challenges posed by SOX
compliance if the decision is to go public, considering the impact of SOX
compliance. Partially supported your decision by identifying the potential
advantages and disadvantages that SOX may have on your company, based on your
research. Partially provided specific examples. |
Satisfactorily assessed the financial
impact that SOX might have on your company if it decides to go public, by
researching the results of SOX compliance surveys. Satisfactorily took a
position as to whether your company can overcome the challenges posed by SOX
compliance if the decision is to go public, considering the impact of SOX
compliance. Satisfactorily supported your decision by identifying the
potential advantages and disadvantages that SOX may have on your company,
based on your research. Satisfactorily provided specific examples. |
Thoroughly assessed the financial
impact that SOX might have on your company if it decides to go public, by
researching the results of SOX compliance surveys. Thoroughly took a
position as to whether your company can overcome the challenges posed by SOX
compliance if the decision is to go public, considering the impact of SOX
compliance. Thoroughly supported your decision by identifying the potential
advantages and disadvantages that SOX may have on your company, based on your
research. Thoroughly provided specific examples. |
|
5. Make a recommendation as the CEO regarding the alternative
(i.e., going public or staying private) that will best support the company’s
expansion goals. Support your position. Weight: 20% |
Did not submit or incompletely
made a recommendation as the CEO regarding the alternative
(i.e., going public or staying private) that will best support the company’s
expansion goals. Did not submit or incompletely supported your position. |
Partially made a
recommendation as the CEO regarding the alternative (i.e., going public or
staying private) that will best support the company’s expansion goals.
Partially supported your position. |
Satisfactorily made a
recommendation as the CEO regarding the alternative (i.e., going public or
staying private) that will best support the company’s expansion goals.
Satisfactorily supported your position. |
Thoroughly made a
recommendation as the CEO regarding the alternative (i.e., going public or
staying private) that will best support the company’s expansion goals.
Thoroughly supported your position. |
|
6. 4 references Weight: 5% |
No references provided |
Does not meet the required number
of references; some or all references poor quality choices. |
Meets number of required
references; all references high quality choices. |
Exceeds number of required
references; all references high quality choices. |
|
7. Clarity, writing mechanics, and
formatting requirements Weight: 10% |
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