Accounting Reporting Criteria

Essay by chase06University, Bachelor'sA-, August 2009

download word file, 4 pages 0.0

The contretemps event of the Enron and Tyco was the manifest that the Government bodies should ensure that the financial statements submitted by the organizations and industries are incorruptible and veracious. In 2002, to verify this act is properly done, the Congress passed the Sarbanes Oxley Act (SOX). The Act described the requirements for financial reporting for public corporations is to be overseen by the Securities and Exchange Commission. The Sarbanes Oxley Act requires all the public limited companies to establish and maintain very strict laws regarding the financial reporting and accounting.

The two major aircraft rivals worldwide are the Airbus and Boeing. These two aircrafts are entirely two different corporations with different internal controls. Boeing is a domestic corporations and the Airbus is an international corporations. The following paper will contain the comparison and differentiation of the regulatory environments of these two corporations.

The Boeing Company is very strict about their regulatory system and it is working their best to meet all the requirements of the SOX acquiescence.

Boeing has employed significant resources in order to assure that the company is SOX compliant. One of these resources is the Corporate Audit organization. The Corporate Audit organization reviews the entire systems of the internal controls and assures that all the organizations are following the SOX act accurately and the system is functioning as intended. These reviews are very essential in order for the organization to correct any divaricating figures and forward it to external audits.

Most of the organizations within Boeing have Regulatory Governance groups that employ subject matter experts (SME's). Some of these SME's are Boeing employees and some are contract employees from PricewaterhouseCoopers, Jefferson Wells, and other companies. Their role is to help the control performers understand the controls, the audit process, and the requirements for SOX. Often...