Week 5 Team Paper (Regulatory Environment comparison between foreign and U.S. company - Essay Example

The regulatory requirement is lower in Latin America as compared to US as both the regions are different in their orientation. For a company working in Brazil, generally the regulatory requirements may not be that much strong as compared to the company which is working in US.Under both the regulatory requirements, all public companies are required to prepare their financial statements duly audited by practicing auditors. Further, Apple is required to fulfill other stringent requirements such as compliance with Sarbanes Oxley and other SEC requirements whereas Aracruz Cellulose has to meet only its SEC requirements.

Under the old Brazilian Laws, a company was not required to include statement of cash flows into its annual accounts however the same has now been included whereas US companies were required to present the same statement in their annual accounts as it was regulatory requirement. (www.deloitte.com.br, 2008).Further to that companies in Brazil are not required to prepare themselves for the corporate governance issues such as establishment of separate and independent audit committee, independent board to oversee the affairs of the companies and greater disclosure requirements however Apple, under the US regulatory environment has to ensure the same.

Referenceswww.deloitte.com.br. (2008). Changes to accounting practices in Brazil. Retrieved July 09, 2008, from www.deloitte.com.br: http://www.deloitte.com.br/publicacoes/2007/lei11638ingles.pdf.