Question

write a recommendation letter addressed to the Board of Directors of your hypothetical audit client for the formation of a compliance assessment team

Assume that the audit client is a publicly held organization. • Choose what type of business they operate and their industry classification. • Address the following: o What are the requirements of the NYSE, SEC and credit rating agencies? o Provide detail to justify the need for a compliance assessment team for your audit client. o What other compliance related requirements are important functions relating to governance, risk, and compliance (GRC) that the compliance assessment team will be responsible for? o What necessary compliance recommendations would you make to your audit client?

Answer 1

To

The Board of Directors

Red Wings Inc.

Sub: Formation of Compliance Assessment Team

Respected sir,

This is to recommend you that the company should form a Compliance Assessment Team for the purpose of monitoring day to day Compliance requirements of NYSE, SEC and the rating agencies.

Since your company is into medical laboratory business the Stock exchange requires you to comply With certain standards regarding Corporate Governance as per the NYSE's listed Company Manual like formation of an independent audit committee, certification by the CEO for any non-compliance of Corporate Governance rules etc., also SEC requires to file Annual and quarterly financial statements and reports in a timely manner which if violated would cost the company both financially and in terms of reputation as well.

Further the rating agencies requires sufficient and appropriate information and disclosure so as to assist them in rating the borrowing capacity.

Hence, it is highly recommended to form a Compliance Assessment Team which would be a great hand in smooth functioning of the business leading to achieve the vision and mission of the company.

Your's Sincerely

Mr. Paul Hugen

Partner

( Great lakes consultant LLP)

Date: March 22, 2020.