Problem 7.1
Accounting 305
Meeting with Go-Go’s audit committee, which consists of the corporate controller,
treasurer, financial vice president, and the budget director[ CITATION Rom12 \l 1033 ].
According to the Sarbanes-Oxley Act of 2002, a publically held company’s audit
committee members must be on the company’s board of directors and be independent of the
company[ CITATION Sar \l 1033 ]. All members of Go-Go’s audit committee are employees
and are not independent of the company. It is the audit committee that is in charge of overseeing
the company’s internal controls, financial reporting process and compliance with regulations,
laws and standards this could be considered a conflict of interest.
Recognizing the treasurer was a former aide to Ernie Eggers, who was convicted of
fraud[ CITATION Rom12 \l 1033 ].
The position of treasurer involves the handling of cash and other assets, it is highly
