Define, using support from accounting standards or other empirical evidence, what a material weakness is in terms of SOX compliance

Question description

Prepare an analysis of Trinity Industries’ first year of Sarbanes–Oxley (SOX) compliance. The vice president (VP) and chief audit executive described the company as a likely candidate for a material weakness in the first year of SOX compliance. What were the elements critical to the company’s decisive success in its first year of compliance? Define a material weakness and explain the material weaknesses that are specific to Trinity. Describe the factors that made Trinity a success by illustrating the flow processes of the organization both in a narrative and process flowchart. This flowchart will be used to identify gaps and other threats to potential audit weaknesses. Prompt: Formulate your processes into a comprehensive flowchart that will be used to identify gaps in processes and other threats to potential audit weaknesses.

Specifically, the following critical elements must be addressed:

II. First Year of SOX Compliance

a) The VP and chief audit executive described the company as a likely candidate for a material weakness in the first year of SOX compliance. What were the elements critical to the company’s decisive success in its first year of compliance?

b) What internal controls are important for preparing accurate and reliable financial reports? Support your response using both examples provided in the case study, as well as research into accounting standards (i.e., Public Company Accounting Oversight Board [PCAOB]).

c) Define, using support from accounting standards or other empirical evidence, what a material weakness is in terms of SOX compliance.

d) Assess, through reflection on the case study as well as the comparable industries identified in the overview, what material weaknesses are specific to Trinity.

e) Articulate standards addressed in PCAOB regarding the concept of material weaknesses in development of internal control compliance. Ensure that you demonstrate the requirements of SOX from inception in 2002.

f) Describe the factors that made Trinity successful by illustrating the flow processes of the organization both in a narrative and process flowchart.

Guidelines for Submission: Your analysis must be submitted as a 2–3-page Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least three sources cited in APA format.