Write a 4,200- to 4,900-word response to the business owners to provide an overall assessment of a publicly traded company’s key components and accounting requirements. Consider how the requirements for a publicly traded company differ from those of a private company and the changes that must be made before a potential initial
public offering.
• Compare the major regulatory agencies affecting financial accounting reporting for publicly traded companies and explore the differences in reporting
requirements for private and public companies.
• Analyze the critical components and interrelationships between the four primary financial statements. How does financial data assist managers in better
decision-making, planning, and forecasting? Include an assessment of the importance of reporting accurate and financially sound data and the impact on
effective decision-making.
• Explore the different financial statement analysis methods and the benefits of economic data analysis. Identify the main categories of ratio
analysis and provide specific examples of each ratio type and their uses within each category. Evaluate how these ratios are used to analyze financial
data and impact managerial decision-making.
• Evaluate the characteristics for measuring the effectiveness of investment decisions through capital budgeting. Compare the three capital budgeting
valuation methods: internal rate of return, net present value, and payback method. Include how each valuation method creates accountability and
measurability of a capital budgeting project and overall decision-making effectiveness.
• Analyze the traditional costing methods commonly used in business by comparing the techniques and the types of business. Each costing method best suits controlling costs. Include additional analysis on activity-based costing, its relationship to traditional costing methods, and the advantages of
managerial decision-making.
• Explore the relationship between effective budgeting and the resulting benefits to business owners and decision-making. Analyze how the essential
components required to create a successful budget are used to track and control the effectiveness of decision-making. Include an analysis of the relationship
between standard and actual amounts (variances) and their effect on managerial decision-making and performance.
• Evaluate the critical components of the Sarbanes-Oxley Act and the relationship to managerial responsibility for following and reporting potential ethical
violations. Discuss possible risks or ethical dilemmas for a company that does not fully adhere to the Sarbanes-Oxley regulations.
• Evaluate the social responsibility of a company beyond the maximization of profits. Identify regulations a company must follow and policies they may adopt to
become more socially responsible. Include the risks or consequences of lacking social responsibility and the potential impact on a company.
Format your assignment according to APA guidelines.
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