Discussion Need and 3 responses for students work

Part 1: Financial Acumen

Keeping abreast of the financial measures and metrics employed by a company allows employees to better understand its health and position at any given time. Using Campbellsville University library link or other libraries and the Internet:

1. Review at least three (3) articles on financial acuity. Summarize the articles in 400 – 600 words. Use APA formatting throughout including in-text citations and references.

2. Discuss the benefits of establishing solid financial acumen in a company? Discuss your personal experiences in a situation where financial acumen was either not supported as an organizational hallmark or, conversely, was built into the company’s culture.

Part 2: Sarbanes-Oxley (SOX)

Write a 200-word commentary on Sarbanes Oxley and the importance this act has for American businesses today. Your commentary should include the following:

A. Rationale for SOX
B. Provisions of SOX
C. Enforcement of SOX

Running head: FINANCIAL ACUMEN AND SARBANES-OXLEY

FINANCIAL ACUMEN AND SARBANES-OXLEY 1

Financial Acumen and Sarbanes-Oxley

Every organization has its own financial goal in improving financial standards of the company by trying to analyse the previous and existing financial standings of the company. There should be a thorough clarity and knowledge in understanding and dealing with any business situation, for which the knowledge in financial acuity is very critical and important in today’s world in running successful business.

Fulk, M., Watkins, K., Grable, J., & Kruger, M. (2018). Who Changes Their Financial Planner? Journal of Financial Planning, 31(8), 48–56. Retrieved from

http://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=buh&AN=131004968

This is a very interesting article that helps in understanding the need in changing the financial planners based on the factors such as marital status, inheritability etc., In this article the author describes a great wealth transfer of $30 trillion in assets from the family to their younger generations. Therefore, financial planners believe that there might be a possibility of change in the financial planning and planners for the amount of wealth inherited. It is interesting to note the fact the authors mentioned in their paper of those families or individuals with high income are willing to pay more for their financial advising and planning. In a nutshell, from this paper it is understood that financial planning is a help-seeking behaviour where the individuals seeks advise based on their assets and income for their future savings and investments. Those who seek help with their finances from a financial advisors and planners tend to me more confident and carry less regret or disappointment over the decisions made.

The main aim of this paper is to understand how individuals with a good house-hold income make decisions in choosing/changing their financial planners and advisors and what are their outcome using financial help. The methodology used in this study is simple as they had set up questionnaires to individuals based on certain criteria based on the financial health and background. The results indicated that people who often changed their financial advisors or planners are from (i) wealthy background, who had more financial capacity, (ii) older, (iii) individuals with good financial capacity tended to be remained divorced or widowed. These individuals who fell under this category have also exhibited high levels of financial acumen and confidence over the years with good investments and savings. The results also indicated that these individuals pick/choose or change their financial planners based on the practice management based on the accuracy of judgements and evaluations their planners give based on future investments.

Tabbush, V. (2018). Understanding Costs: How CBOs Can Build Business Acumen for Future Partnerships. Generations, 42(1), 61–64. Retrieved from

http://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=slh&AN=129298601

In this article the authors indicate how financial acumen affects the business decisions especially community-based organizations otherwise called as CBO which required accurate assessments on cost benefits. As earlier mentioned in my discussion of the importance of financial acuity in business health it is essential that the decisions made based on the company’s financials will have a direct effect on the management decisions. Therefore, in this paper the authors discuss on cost-benefits in a business as to which/what costs ate relevant and contribute in financial and business decisions and how can they be assessed/analysed/changed or shaped in making wiser choices on the company’s health.

It is vital for CBOs to compare and contrast their financial expenses because they ‘express costs by the specific service line or program that triggers them’ as mentioned in this paper. Therefore, for small-scale developing organizations, variable costs could be very rough due to the unexpected rise in number of volume-based activities. So, when there exists fixed costs CBOs can have good chance in capturing financial benefit that help in company’s growth. For the growth of organizations such as CBO, the authors in this study emphasize the importance of the financial management to distinguish between the fixed and variable costs in their contract-year program by volume and cumulative experience which in the long run is an important aspect in determining and building CBO’s business acumen.

Kess, S., & Mendlowitz, E. (2015). Personal Financial Planning for Business Owners. CPA Journal, 85(9), 60–61. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=buh&AN=111560210

In this paper the authors establish the fact of how the business owners have difficulty in planning their finances. Individuals holding or running a business should always be cautious with the cash flow as it helps them to look back to their savings giving a potential chance for investments and taking the business to the next level. Thus, having a solid financial planning would help them analyse the personal choices of the business owners on what they can be afforded when retired. There would be multiple instances where the clients would need a good financial planners and advisors. Therefore, in this paper the author suggests that CPA financial advisors would help in analysing the client’s issues in their business in-turn helping them realize the true value of the trusted advisor in their business acumen.

Sarbanes-Oxley Act

In the year 2002, U.S senate Paul Sarbanes of Maryland and U.S representative Michael Oxley of Ohio co-authored this act after realizing the series of large failures and prolonged period of scandals of the public companies such as Tyco and Worldcom (Slaughter,2016). This act was mainly created to help in protecting the employees, public, entrepreneurs, shareholders from fraudulent activities that happen in financial practices. This act is commonly referred to as the SOX act, which helps in financial transformation by strengthening the audit committees performing and conducting those tests and analysis in providing accuracy of the financial statements. This act has very strict margins that serves in tightening the security procedures by preventing fraudulent activities happening in the accounting firms (Blokhin, 2019).

This complex lengthy piece of this legislation act has some internal controls and measures that demands these public companies to comply with the standards. This gives a two-part effect in the market for investors. The authors of the bill intend to protect the individual investors by giving them the confidence in the previously broken market also by cutting short those opportunities for those companies that are prone to exhibit fraudulent activities (Slaughter, 2016).

Overall analysis of this SOX act pertaining to the US economy and growth still remains a bit neutral exhibiting advantageous and disadvantageous of the growth in US economy. In a way bringing this act would help the companies to have a transparent financial statement by keeping the business on-track while creating a huge disadvantage to the small-scale and developing companies when not complying with the SOX standards and the internal control structures (Big, 2018).

References

Big, S. (2018, June 18). The Sarbanes-Oxley Act and It’s Effect on American Businesses. Retrieved from https://myventurepad.com/the-sarbanes-oxley-act-and-its-effect-on-american-businesses/.

Blokhin, A. (2019, January 6). The Impact of the Sarbanes-Oxley Act of 2002. Retrieved from

https://www.investopedia.com/ask/answers/052815/what-impact-did-sarbanesoxley-act-have-corporate-governance-united-states.asp

Fulk, M., Watkins, K., Grable, J., & Kruger, M. (2018). Who Changes Their Financial Planner? Journal of Financial Planning, 31(8), 48–56. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=buh&AN=131004968
Kess, S., & Mendlowitz, E. (2015). Personal Financial Planning for Business Owners. CPA Journal, 85(9), 60–61. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=buh&AN=111560210

Slaughter, J. (2016, October 26). The Impact of the Sarbanes-Oxley Act on American Businesses. Retrieved from https://smallbusiness.chron.com/impact-sarbanes-oxley-act-american-businesses-1547.html.

Tabbush, V. (2018). Understanding Costs: How CBOs Can Build Business Acumen for Future Partnerships. Generations, 42(1), 61–64. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=slh&AN=129298601

DISCUSSION 1 1

DISCUSSION 1 4

Vishnu Vardhan Reddy, Puli

564429

Part1: Financial Acumen

Baharom, (2014), discusses the idea of “Gauging Business Acumen Degree of Technical Students from Universiti Teknologi PETRONAS: Views from the Malaysian Industry.” The financial acumen includes the strategies for handling the organization’s financial services. The purpose of the financial acumen is to develop the challenge that depends on the quality of financial services. The US revealing began with finance. The more organize the individuals with financial acuity, the more consumers are assigns in the company. Towards the end of each day, ask each office head to transform into an overview of regions where the corresponding financial language is not being spoken. After the instructional conference, delegate each section to the undertaking of addressing financial interest with staff in their areas of expertise. For those staff who are low on an income basis, encourage them to use more everyday language (Baharom, 2014, pp. 4683 – 4688).

Barsch (2016), defines information on “Looking beyond the Financial Plan to Help Clients Maximize Their Retirement Years.” The article contains details on financial planning, customer support and retirement assistance. The universal approach describes the retirement plan particularly and is highly complex to the safety and happiness which needs the second preparation plan. Additionally, the author states that financial advisors need to take intense action to strengthen their relationship. The concern comes with retirement which has a significant impact on family, colleagues, and wife on the various social relationships. To consumers, retirement planning is extremely difficult and describes the potential treatment in cognitive decline. The article addresses the mental acuity disability summary, which reflects the document to explain or clarify some of the moves and impact long-term policy (Barsch, 2016, pp. 7-10).

Pradhan, (2019), describes details on “High Medicaid Nursing Homes: Organizational and Market Factors Associated with Financial Performance.” This paper presents information on financial accumulations. The main purpose of presenting an article is to examine the partnership between the nursing home, safety and financial performance. Investigating the Author’s partnership using the secondary data tool while sourced consider the qualification services and Medicate expense analysis show the sample credential and provide the results. The main reasons are to improve the market for the nursing home competition based on the quality and the public variety introduced by CMS. The nursing home website provides the clinical condition which shows higher-quality information on the opt nursing home. The financial acumen can consume the hire public reports and add accurate information and the resident acuity is calculated at the stage of the building. The study results suggest that the cases should be presented, and the process should be optimized, and the results operated the financial services (Pradhan, 2019, pp. 1-9).

Benefits of Establishing Solid Financial Acumen

Developing the organization’s financial acumen needs to utilize as these experience is contracting within the data, outline, and sales revenues. The financial acumen focused on the three major processes, including global knowledge, financial service, and efficiency. An organization’s growth involves money understanding and makes the organization function for the staff. The key benefits are correlated with the corporate financial acumen that optimizes the business decision-making process and promotes the employee financial service.

According to my point of view, the Financial Acumen in a company means the ability to make an excellent decision. Developing decision making helps to lead the future in a better way. That is a boost to the corporate decision-making process. The financial acumen will ingest the hire public reports and add accurate information, and thus, resident acuity is calculated at the stage of the building.

Part 2: Sarbanes-Oxley (SOX)

The US government passed the legislation known as the Sarbanes-Oxley Legislation (SOX) in the year 2002. It is used to ensure that governance practice and corporate disclosure were acceptable to the general public. The Act needs companies to have an autonomous audit committee that comprises financial specialists, and that can advance the timing and nature of financial revelations (Boylan, 2015, pp. 121-126).

Nowadays, each public organization has to follow the SOX act, both from the IT side and from the financial side. An organization needs to store all corporate documents, such as messages and online records. These records are not lower than five years.

The SOX rational act is better reflected earlier through the proceedings. The late 19th century is marked as economic development; this development was accomplished through the internet boom, which saw the emergence of the news industry. These businesses are connected to the internet-driven by capitalist undertakings.

The provisions of this act relating to Accounting Software Inc. SOX is protecting stockholders from corporate manipulation over its restrictions on client financial statements. Other statements contain financial statements, cash flows, and impact analyses.

The SOX act of Enforcement is administered by the SEC, known as the “Securities and Exchange Commission.” The statute relies on the Securities and Exchange Commission to make decisions on the equipment in compliance with the regulation.

References
Baharom, M. N. (2014). Gauging Business Acumen Level of Technical Students from Universiti Teknologi PETRONAS: Views from the Malaysian Industry. Procedia – Social and Behavioral Sciences, 4683 – 4688. doi:10.1016/j.sbspro.2014.01.1008
Barsch, R. (2016). Looking beyond the Financial Plan to Help Clients Maximize Their Retirement Years. Journal of Financial Service Professionals,, 70(2), 7-10.
Boylan, D. (2015). A Review of the effects of Sarbanes Oxley on Stock Price. Global Business & Finance Review, 20(1), 121-126. doi:10.17549/gbfr.2015.20.1.121
Pradhan, R. (2019). High Medicaid Nursing Homes: Organizational and Market FactorsAssociated With Financial Performance. The Journal of Health Care Organization, Provision, and Financing, 56, 1-9. doi:org/10.1177/0046958018825061

DISCUSSION 1 1

DISCUSSION 1 4

Vishnu Vardhan Reddy, Puli

564429

Part1: Financial Acumen

Benefits of Establishing Solid Financial Acumen

Part 2: Sarbanes-Oxley (SOX)

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