A Brief Note On The Sarbanes Oxley Act Of 2002

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What is Retail? Retailing is one of the largest industries in the United States and accounts for approximately 10 percent of the gross national product. A retailer is someone who purchases items from a supplier or wholesaler for re-sale at a profit. The retailer earns his or her living by making a profit on the re-sale. Retailers purchase a product, mark up its cost, and advertise it for sale. The mark-up process is the key to the retailers business because if the product is marked up too high, consumers will not buy it. If it is marked too low then the retailer will have lost profits and the supply may be quickly exhausted. Another key to the retail business is knowing what the customer needs or wants and when, how much the customer is willing to pay for the product, what the competition is charging, and where to find the product at the best possible cost to make a profit. Since the Sarbanes Oxley Act of 2002 was passed, it is required for all public companies to have an audit of financial statements as well as reporting internal controls over its financial reporting. This applies to all public companies across every industry, including the retail industry. Retail companies are especially susceptible to fraud and misstatement due to the continuing efforts to incorporate technology with its business processes. With the growing use of technology, it is easier for managers or employees to alter digital data with or without intent. In order to conduct a sufficient audit,

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