522 - Exam 1 - Chapter 2 (5)

Question 1

Section 302 requires (2Qs)

Answer 1

Section 302 requires management—specifically, the CEO and CFO—to sign off on financial statement fairness and internal control effectiveness

Question 2

Section 404 requires (2Qs)

Answer 2

Section 404 requires a separate management report on internal control effectiveness and audit by the financial statement auditor

Question 3

Demands of FS users (1Q)

Answer 3

KPI’s

Question 4

Reporting Challenges (1Q) (7 of them)

Answer 4

1. Pressure to Meet Analysts Forecasts
2. Excessive & Improper Use of Derivatives
3. Restatements
4. Fair Value Issues
5. Accounting for Stock Options
6. XBRL
7. IFRS Adoption