ACCT567 Laurel City Case 12-7

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ACCT567 Laurel City Case 12-7
The city council members of Laurel City are considering establishing an audit…

SKU: ACCT 567 Audit Committees Case 12–7 Categories: , Tags: , ,

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ACCT567 Laurel City Case 12-7

ACCT567 Laurel City Case 12-7

Audit Committees Case 12–7 A+

The city council members of Laurel City are considering establishing an audit committee as a subset of the council. Several members work for commercial businesses that have recently established such committees in response to the Sarbanes-Oxley Act of 2002. They have asked your advice as a partner in the public accounting firm that audits the city’s annual financial statements. They are especially interested in whether the benefits of such a committee outweigh any costs to establishing one.

Required

  1. What resources are available to the city to help it use this audit committee efficiently and effectively?
  2. Provide a short report to the council that lists the benefits and costs of establishing an audit committee. Explain what qualifications would be expected of council members who sit on this committee and the tasks in which they would be engaged.

Sarbanes-Oxley Act of 2002 brought attention to audit committees, although many organizations have charged subsets of the Board or Council with specific duties relating to the audit and auditors.

  1. There are many resources, workshops, articles and books on the topic of audit…