AUD 2 Professional Responsibilities and Ethics 9 Flashcards
1
Q
Sarbanes-Oxley Act (SOX)
Relevant pro___ions follow:
Title I – Public Accounting Oversight Board (sections)
Title II – Auditor Independence
Title III – Corporate Responsibility
Title IV – Enhanced Financial Disclosures
Title V – Analyst Conflict of Interest
Title VI – Commission Resources and Authority
Title VII – Studies and Reports
Title VIII – Corporate and Criminal Fraud Accountability
Title IX – White Collar Crime Penalty Enhancements
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
Title II – Auditor Independence
Title III – Corporate Responsibility
Title IV – Enhanced Financial Disclosures
Title V – Analyst Conflict of Interest
Title VI – Commission Resources and Authority
Title VII – Studies and Reports
Title VIII – Corporate and Criminal Fraud Accountability
Title IX – White Collar Crime Penalty Enhancements
2
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 101 – Establishes the Board (PCAOB), which consists of
5 full time members,
2 of which are ___s,
all appointed by the SEC.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 101 – Establishes the Board (PCAOB), which consists of
5 full time members,
2 of which are CPAs,
all appointed by the SEC.
3
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 101 – Establishes the Board (PCAOB), which consists of
5 full time members,
2 of which are CPAs,
all appointed by the SEC.
• 102 – Requires public accounting firms to re____er with the Board in order to issue or participate in the issuance of an audit report for an issuer.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 101 – Establishes the Board (PCAOB), which consists of
5 full time members,
2 of which are CPAs,
all appointed by the SEC.
• 102 – Requires public accounting firms to register with the Board in order to issue or participate in the issuance of an audit report for an issuer.
4
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 102 – Requires public accounting firms to register with the Board in order to issue or participate in the issuance of an audit re____ for an issuer.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 102 – Requires public accounting firms to register with the Board in order to issue or participate in the issuance of an audit report for an issuer.
5
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 103 – Authorizes the Board to establish
audit standards,
quality control standards, and
ethics standards
to be used by re______ed public accounting firms
in the preparation and issuance of audit reports.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 103 – Authorizes the Board to establish
audit standards,
quality control standards, and
ethics standards
to be used by registered public accounting firms
in the preparation and issuance of audit reports.
6
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 103 – Authorizes the Board to establish
audit standards,
quality control standards, and
ethics standards
to be used by registered public accounting firms
in the preparation and issuance of audit reports.
The board also inspects, investigates, and disciplines pu____ accounting firms and enforces compliance with the act.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 103 – Authorizes the Board to establish
audit standards,
quality control standards, and
ethics standards
to be used by registered public accounting firms
in the preparation and issuance of audit reports.
The board also inspects, investigates, and disciplines public accounting firms and enforces compliance with the act.
7
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 103 – Authorizes the Board to establish
audit standards,
quality control standards, and
ethics standards
to be used by registered public accounting firms
in the preparation and issuance of audit reports.
The board also inspects, investigates, and disciplines public accounting firms and enforces compliance with the act.
o S\_\_\_\_\_\_\_\_\_s either by the AICPA (ASB) or the PCAOB or a combination of the two.
o Must keep workpapers for 7 years from report release date.
o A second partner is required to review all audit reports.
o Audit reports must describe the scope of testing for I/C.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 103 – Authorizes the Board to establish
audit standards,
quality control standards, and
ethics standards
to be used by registered public accounting firms
in the preparation and issuance of audit reports.
The board also inspects, investigates, and disciplines public accounting firms and enforces compliance with the act.
o Standards either by the AICPA (ASB) or the PCAOB or a combination of the two.
o Must keep workpapers for 7 years from report release date.
o A second partner is required to review all audit reports.
o Audit reports must describe the scope of testing for I/C.
8
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 104 – Provides for Quality Control P____ Review Inspections to be conducted by the Board:
o Must be performed every year for firms that provide more than 100 audit reports annually.
o At least every 3 years if 100 or less annually
▪ A written report of findings, including deficiencies discovered, is provided to the SEC and made available to the public.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 104 – Provides for Quality Control Peer Review Inspections to be conducted by the Board:
o Must be performed every year for firms that provide more than 100 audit reports annually.
o At least every 3 years if 100 or less annually
▪ A written report of findings, including deficiencies discovered, is provided to the SEC and made available to the public.
9
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board au____ty to conduct investigations and obtain all relevant info.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
10
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all re_______ info.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
11
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct in__________s and obtain all relevant info.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
12
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and ob____ all relevant info.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
13
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend au\_\_\_\_\_\_s,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
14
Q
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
su\_\_\_\_\_d auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
15
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the re\_\_\_\_\_\_\_\_n of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
16
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
re\_\_\_e the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
17
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the acc\_\_\_\_\_ing firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
18
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose pe\_\_\_\_\_ies for violations
or for unwillingness to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
19
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for vi\_\_\_\_\_\_ns
or for unwillingness to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
20
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or im\_\_\_\_ penalties for violations
or for unwillingness to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
21
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unw\_\_\_\_\_\_\_ss to cooperate with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
22
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to co\_\_\_\_\_\_\_\_ with an investigation.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
23
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an inv\_\_\_\_\_\_\_\_\_.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
24
Q
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Provisions ap\_\_\_ to both domestic and foreign auditors.
A
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Provisions apply to both domestic and foreign auditors.
25
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Provisions apply to both do_____ and foreign auditors.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Provisions apply to both domestic and foreign auditors.
26
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Provisions apply to both domestic and for____ auditors.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Provisions apply to both domestic and foreign auditors.
27
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
o Provisions apply to both domestic and foreign au_____s.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
o Provisions apply to both domestic and foreign auditors.
28
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary pe____es for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
29
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an in________
and $2M for an entity
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
30
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an e____y
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
31
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional br____ $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
32
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for vi______n of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
33
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or se_____ies law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
34
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if in________l breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
35
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board ru__s or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
36
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
o Provisions apply to both domestic and foreign auditors.
o Monetary penalties for violation of board rules or securities law
capped at $___K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
o Provisions apply to both domestic and foreign auditors.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
37
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
o Provisions apply to both domestic and foreign auditors.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $_M for an entity
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
o Provisions apply to both domestic and foreign auditors.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
38
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives B____ authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
o Provisions apply to both domestic and foreign auditors.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 105 – Gives Board authority to conduct investigations and obtain all relevant info.
o Power to
suspend auditors,
revoke the registration of the accounting firm,
or impose penalties for violations
or for unwillingness to cooperate with an investigation.
o Provisions apply to both domestic and foreign auditors.
o Monetary penalties for violation of board rules or securities law
capped at $100K for an individual
and $2M for an entity
(if intentional breach $750K and $15M).
39
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign pu____ accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
40
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public acc____ting firms furnishing an audit report to an issuer and requires them to comply with board requests.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
41
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an au___ re____ to an issuer and requires them to comply with board requests.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
42
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an is__er and requires them to comply with board requests.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
43
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to com___ with board requests.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
44
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 106 – Re______es foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
45
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates for___n public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
46
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms fu____ing an audit report to an issuer and requires them to comply with board requests.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
47
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 107 – Gives SEC oversight and enforcement authority over the Board and its de______s.
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
• 107 – Gives SEC oversight and enforcement authority over the Board and its decisions.
48
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 107 – Gives ___ oversight and enforcement authority over the Board and its decisions.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 107 – Gives SEC oversight and enforcement authority over the Board and its decisions.
49
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 107 – Gives SEC oversight and enf_______ authority over the Board and its decisions.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 107 – Gives SEC oversight and enforcement authority over the Board and its decisions.
50
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 107 – Gives SEC oversight and enforcement au_____y over the Board and its decisions.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 107 – Gives SEC oversight and enforcement authority over the Board and its decisions.
51
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting st_______s established by a standard setting body
that meets certain qualifications, such as the FASB.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
52
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that meets certain qu_________s, such as the FASB.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
53
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to ad___ the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
54
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – A_____s the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
55
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the S___
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
56
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the acc_____ing standards established by a standard setting body
that meets certain qualifications, such as the FASB.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
57
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that m____s certain qualifications, such as the FASB.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC
to adopt the accounting standards established by a standard setting body
that meets certain qualifications, such as the FASB.
58
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to es_____ accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
59
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting pr_______s, including content, structure, and standard-setting process.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Required study of accounting principles, including content, structure, and standard-setting process.
60
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required st___ of accounting principles, including content, structure, and standard-setting process.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Required study of accounting principles, including content, structure, and standard-setting process.
61
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including co_____, structure, and standard-setting process.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Required study of accounting principles, including content, structure, and standard-setting process.
62
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including content, st_______e, and standard-setting process.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Required study of accounting principles, including content, structure, and standard-setting process.
63
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including content, structure, and standard-s___ing process.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Required study of accounting principles, including content, structure, and standard-setting process.
64
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Re___ed study of accounting principles, including content, structure, and standard-setting process.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Required study of accounting principles, including content, structure, and standard-setting process.
65
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Made re___________s to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
66
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Made recommendations to F____, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
67
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Made recommendations to FASB, resulting in de_________ of the Codification, and adopted FASB standards as amended by SEC pronouncements.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
68
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Made recommendations to FASB, resulting in development of the Co________n,
and adopted FASB standards as amended by SEC pronouncements.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
69
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Made recommendations to FASB, resulting in development of the Codification,
and adopted FASB standards as amended by SEC pro__________s.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Made recommendations to FASB, resulting in development of the Codification,
and adopted FASB standards as amended by SEC pronouncements.
70
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Made recommendations to FASB, resulting in development of the Codification,
and ad___ed FASB standards as amended by SEC pronouncements.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933
o Made recommendations to FASB, resulting in development of the Codification,
and adopted FASB standards as amended by SEC pronouncements.
71
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including content, structure, and standard-setting process.
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as am___ed by SEC pronouncements.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including content, structure, and standard-setting process.
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
72
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including content, structure, and standard-setting process.
o Ma__ recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including content, structure, and standard-setting process.
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
73
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including content, structure, and standard-setting process.
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by ___ pronouncements.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 108 – Amends the Securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards,
to adopt the accounting standards established by a standard setting body that meets certain qualifications, such as the FASB.
o Required study of accounting principles, including content, structure, and standard-setting process.
o Made recommendations to FASB, resulting in development of the Codification, and adopted FASB standards as amended by SEC pronouncements.
74
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting st______-setting body (FASB) to be funded from fees imposed upon public companies.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
75
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (F____) to be funded from fees imposed upon public companies.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
76
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from f__s imposed upon public companies.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
77
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon pu____ companies.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
78
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for f___ing of the Board and the designated accounting standard-setting body (FASB) to be f___ed from fees imposed upon public companies.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
79
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
* 101 – Establishes the Board (PCAOB)
* 102 – Requires public accounting firms to register with the Board (PCAOB)
```
• 103 – Authorizes the Board (PCAOB) to establish audit, quality control, and ethics standards.
The board (PCAOB) also inspects, investigates, and disciplines public accounting firms and enforces compliance.
```
• 104 – Provides for Quality Control Peer Review Inspections to be conducted by the Board (PCAOB)
• 105 – Gives Board (PCAOB) authority to conduct investigations and obtain all relevant info.
Power to suspend auditors, revoke the registration of the accounting firm, or impose penalties for violations
* 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
* 107 – Gives SEC oversight and enforcement authority over the Board (PCAOB) and its decisions.
• 108 – Amends the Securities Act of 1933 to allow the SEC to adopt the accounting standards that meets certain qualifications, such as the FASB.
Required study of accounting principles
Made recommendations to FASB,
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
* 101 – Establishes the Board (PCAOB)
* 102 – Requires public accounting firms to register with the Board (PCAOB)
```
• 103 – Authorizes the Board (PCAOB) to establish audit, quality control, and ethics standards.
The board (PCAOB) also inspects, investigates, and disciplines public accounting firms and enforces compliance.
```
• 104 – Provides for Quality Control Peer Review Inspections to be conducted by the Board (PCAOB)
• 105 – Gives Board (PCAOB) authority to conduct investigations and obtain all relevant info.
Power to suspend auditors, revoke the registration of the accounting firm, or impose penalties for violations
* 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
* 107 – Gives SEC oversight and enforcement authority over the Board (PCAOB) and its decisions.
• 108 – Amends the Securities Act of 1933 to allow the SEC to adopt the accounting standards that meets certain qualifications, such as the FASB.
Required study of accounting principles
Made recommendations to FASB,
• 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
80
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
* 101 – Establishes the Board (PCAOB)
* 102 – Requires public accounting firms to register with the Board
* 103 – Authorizes the Board to establish audit, quality control, and ethics standards. The board also inspects, investigates, and disciplines public accounting firms and enforces compliance.
* 104 – Provides for Quality Control Peer Review Inspections to be conducted by the Board
* 105 – Gives Board (PCAOB) authority to conduct investigations and obtain all relevant info. Power to suspend auditors, revoke the registration of the accounting firm, or impose penalties for violations
* 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
* 107 – Gives SEC oversight and enforcement authority over the Board and its decisions.
* 108 – Amends the Securities Act of 1933 to allow the SEC to adopt the accounting standards that meets certain qualifications, such as the FASB.
* 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
Sarbanes-Oxley Act (SOX)
Title I – Public Accounting Oversight Board (sections)
* 101 – Establishes the Board (PCAOB)
* 102 – Requires public accounting firms to register with the Board
* 103 – Authorizes the Board to establish audit, quality control, and ethics standards. The board also inspects, investigates, and disciplines public accounting firms and enforces compliance.
* 104 – Provides for Quality Control Peer Review Inspections to be conducted by the Board
* 105 – Gives Board (PCAOB) authority to conduct investigations and obtain all relevant info. Power to suspend auditors, revoke the registration of the accounting firm, or impose penalties for violations
* 106 – Regulates foreign public accounting firms furnishing an audit report to an issuer and requires them to comply with board requests.
* 107 – Gives SEC oversight and enforcement authority over the Board and its decisions.
* 108 – Amends the Securities Act of 1933 to allow the SEC to adopt the accounting standards that meets certain qualifications, such as the FASB.
* 109 – Calls for funding of the Board and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies.
81
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
Title II – Auditor Independence
Title III – Corporate Responsibility
Title IV – Enhanced Financial Disclosures
Title V – Analyst Conflict of Interest
Title VI – Commission Resources and Authority
Title VII – Studies and Reports
Title VIII – Corporate and Criminal Fraud Accountability
Title IX – White Collar Crime Penalty Enhancements
Sarbanes-Oxley Act (SOX)
Relevant provisions follow:
Title I – Public Accounting Oversight Board (sections)
Title II – Auditor Independence
Title III – Corporate Responsibility
Title IV – Enhanced Financial Disclosures
Title V – Analyst Conflict of Interest
Title VI – Commission Resources and Authority
Title VII – Studies and Reports
Title VIII – Corporate and Criminal Fraud Accountability
Title IX – White Collar Crime Penalty Enhancements
82
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – Prohibits any registered public accounting firm from providing the following non-audit services to Audit clients:
Bookkeeping,
Financial info system design or implementation,
Appraisal or valuation services,
Actuarial services,
Internal audit outsourcing,
Management functions or HR,
Broker or dealer investment advisor or investment banking services,
Legal services
202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
* 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
* 204 – Requires audit firm to report to the audit committee: Critical accounting policies, Alternative accounting treatments, Material written communications
* 205 – Defines the term audit committee
* 206 – Prohibits the audit firm from providing audit services for issuer if the CEO, controller, CFO, CAO was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – Prohibits any registered public accounting firm from providing the following non-audit services to Audit clients:
Bookkeeping,
Financial info system design or implementation,
Appraisal or valuation services,
Actuarial services,
Internal audit outsourcing,
Management functions or HR,
Broker or dealer investment advisor or investment banking services,
Legal services
202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
* 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
* 204 – Requires audit firm to report to the audit committee: Critical accounting policies, Alternative accounting treatments, Material written communications
* 205 – Defines the term audit committee
* 206 – Prohibits the audit firm from providing audit services for issuer if the CEO, controller, CFO, CAO was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
83
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any re_____ed public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
o Actuarial services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
o Actuarial services.
84
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o B_________ing or other services related to the accounting records.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
85
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting r______s.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
86
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o F_______ info systems design or implementation.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
87
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial i___ systems design or implementation.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
88
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems d_____ or implementation.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
89
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or v________n services, or providing fairness opinions or contribution-in-kind reports.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
90
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Ap_______l or valuation services, or providing fairness opinions or contribution-in-kind reports.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
91
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing f____ss opinions or contribution-in-kind reports.
o Actuarial services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
o Actuarial services.
92
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness op_____s or contribution-in-kind reports.
o Actuarial services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
o Actuarial services.
93
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
o Ac______l services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
o Actuarial services.
94
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o I______ audit outsourcing services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
95
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit o________ing services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
96
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o M_________ functions or human resources.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
97
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or h____ resources.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
98
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o B___er or d___ler investment advisor or investment banking services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
99
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer i_________ advisor or investment banking services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
100
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment b___ing services.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
101
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
o L____ services and expert services that are unrelated to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
o Legal services and expert services that are unrelated to the audit.
102
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
o Legal services and expert services that are un_____ed to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
o Legal services and expert services that are unrelated to the audit.
103
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
o Legal services and e_____t services that are unrelated to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
o Legal services and expert services that are unrelated to the audit.
104
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines imp________ble.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
105
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ T__ services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
106
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if pre_______ed by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
107
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit co_______ee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
108
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the ___.
▪ May still perform these services to nonaudit clients or to private companies.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
109
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to p_____ companies.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
110
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to non_____ clients or to private companies.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
111
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from pro___ing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
o Actuarial services.
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
o Legal services and expert services that are unrelated to the audit.
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – PROHIBITS any registered public accounting firm from providing the following non-audit services to Audit clients:
o Bookkeeping or other services related to the accounting records.
o Financial info systems design or implementation.
o Appraisal or valuation services, or providing fairness opinions or contribution-in-kind reports.
o Actuarial services.
o Internal audit outsourcing services.
o Management functions or human resources.
o Broker or dealer investment advisor or investment banking services.
o Legal services and expert services that are unrelated to the audit.
o Any other service the board determines impermissible.
▪ Tax services are still permissible if preapproved by the audit committee and disclosed to the SEC.
▪ May still perform these services to nonaudit clients or to private companies.
112
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – Prohibits any registered public accounting firm from providing the following non-a____ services to Audit clients:
Bookkeeping,
Financial info system design or implementation,
Appraisal or valuation services,
Actuarial services,
Internal audit outsourcing,
Management functions or HR,
Broker or dealer investment advisor or investment banking services,
Legal services
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – Prohibits any registered public accounting firm from providing the following non-audit services to Audit clients:
Bookkeeping,
Financial info system design or implementation,
Appraisal or valuation services,
Actuarial services,
Internal audit outsourcing,
Management functions or HR,
Broker or dealer investment advisor or investment banking services,
Legal services
113
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to pre_______ all auditing and non-auditing services to be provided to an issuer.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
114
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all a____ing and non-auditing services to be provided to an issuer.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
115
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-____ting services to be provided to an issuer.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
116
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove ___ auditing and non-auditing services to be provided to an issuer.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
117
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an i___er.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
118
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not pro_____ed are also required to be preapproved unless they are considered de minimis.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
119
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also re____ed to be preapproved unless they are considered de minimis.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
120
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be pre_____ed unless they are considered de minimis.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
121
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de m____is.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
122
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
___ nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
123
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De m_____s nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
124
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail f__s that do not exceed 5% of the total fees paid to the auditor.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
125
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the a____or.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
126
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed _% of the total fees paid to the auditor.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
127
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not e______ 5% of the total fees paid to the auditor.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
128
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis non_____ services entail fees that do not exceed 5% of the total fees paid to the auditor.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
129
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have re______ed the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
130
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have recognized the services as non_____ services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
131
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have recognized the services as nonaudit services at the time of the e___________
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
132
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the a____ committee and approval was obtained prior to the completion of the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
133
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and ap_____l was obtained prior to the completion of the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
134
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained p____ to the completion of the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
135
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the com_______n of the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
136
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the c____ must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
All nonaudit services that are not prohibited are also required to be preapproved unless they are considered de minimis.
De minimis nonaudit services entail fees that do not exceed 5% of the total fees paid to the auditor.
In addition, the client must not have recognized the services as nonaudit services at the time of the engagement
and the services were promptly brought to the attention of the audit committee and approval was obtained prior to the completion of the audit.
137
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of a____ partner and partner responsible for review every 5 years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
138
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every _ years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
139
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit p_____r and partner responsible for review every 5 years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
140
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner r_________ for review every 5 years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
141
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for r_____ every 5 years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
142
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 _____.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
143
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review e_____ 5 years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
144
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes m_______y and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
145
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and su_______e rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
146
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive r_______n of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
(not audit firm rotation)
147
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit co________:
o Critical accounting policies and practices
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
148
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical acc_____ing policies and practices
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
149
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting po___ies and practices
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
150
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and p____ices
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
151
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o C______ accounting policies and practices
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
152
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to re____ to the audit committee:
o Critical accounting policies and practices
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
153
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Alternative accounting tr________s within GAAP discussed with management
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Alternative accounting treatments within GAAP discussed with management
154
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Alternative accounting treatments within GAAP discussed with m___________
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Alternative accounting treatments within GAAP discussed with management
155
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Al________e accounting treatments within GAAP discussed with management
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Alternative accounting treatments within GAAP discussed with management
156
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Alternative accounting treatments within G____ discussed with management
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Alternative accounting treatments within GAAP discussed with management
157
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Re_______s audit firm to report to the audit committee:
o Critical accounting policies and practices
o Alternative accounting treatments within GAAP discussed with management
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
o Alternative accounting treatments within GAAP discussed with management
158
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Material written com________s between auditor’s firm and management of the issuer
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Material written communications between auditor’s firm and management of the issuer
159
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Material w____n communications between auditor’s firm and management of the issuer
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Material written communications between auditor’s firm and management of the issuer
160
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
o Alternative accounting treatments within GAAP discussed with management
o M______ written communications between auditor’s firm and management of the issuer
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
o Alternative accounting treatments within GAAP discussed with management
o Material written communications between auditor’s firm and management of the issuer
161
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires a___ firm to report to the audit committee:
o Critical accounting policies and practices
o Alternative accounting treatments within GAAP discussed with management
o Material written communications between auditor’s firm and management of the issuer
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 204 – Requires audit firm to report to the audit committee:
o Critical accounting policies and practices
o Alternative accounting treatments within GAAP discussed with management
o Material written communications between auditor’s firm and management of the issuer
162
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term a___ committee
and indicates that
the entire board of directors is considered the audit committee when one has not been designated.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term audit committee
and indicates that
the entire board of directors is considered the audit committee when one has not been designated.
163
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the t___ audit committee
and indicates that
the entire board of directors is considered the audit committee when one has not been designated.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term audit committee
and indicates that
the entire board of directors is considered the audit committee when one has not been designated.
164
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term audit committee
and indicates that
the en___ board of directors is considered the audit committee when one has not been designated.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term audit committee
and indicates that
the entire board of directors is considered the audit committee when one has not been designated.
165
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term audit committee
and indicates that
the entire board of directors is considered the audit committee when one has not been de______ed.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term audit committee
and indicates that
the entire board of directors is considered the audit committee when one has not been designated.
166
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term audit committee
and indicates that
the entire board of di______s is considered the audit committee when one has not been designated.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 205 – Defines the term audit committee
and indicates that
the entire board of directors is considered the audit committee when one has not been designated.
167
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the a____ firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
168
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any p_____ serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
169
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the eq_______t capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
170
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was e______ed in the audit practice of the accounting firm during the one-year period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
171
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the a____ practice of the accounting firm during the one-year period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
172
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-____ period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
173
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the ___-year period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
174
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period p____ to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 206 – Prohibits the audit firm from providing audit services for issuer
if the CEO, controller, CFO, CAO or any person serving in the equivalent capacity
was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
175
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – Prohibits any registered public accounting firm from providing the following non-audit services to Audit clients:
Bookkeeping,
Financial info system design or implementation,
Appraisal or valuation services,
Actuarial services,
Internal audit outsourcing,
Management functions or HR,
Broker or dealer investment advisor or investment banking services,
Legal services
202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
* 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
* 204 – Requires audit firm to report to the audit committee: Critical accounting policies, Alternative accounting treatments, Material written communications
* 205 – Defines the term audit committee
* 206 – Prohibits the audit firm from providing audit services for issuer if the CEO, controller, CFO, CAO was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
Sarbanes-Oxley Act (SOX)
Title II – Auditor Independence
• 201 – Prohibits any registered public accounting firm from providing the following non-audit services to Audit clients:
Bookkeeping,
Financial info system design or implementation,
Appraisal or valuation services,
Actuarial services,
Internal audit outsourcing,
Management functions or HR,
Broker or dealer investment advisor or investment banking services,
Legal services
202 – Requires the issuer’s audit committee to preapprove all auditing and non-auditing services to be provided to an issuer.
* 203 – Establishes mandatory and substantive rotation of audit partner and partner responsible for review every 5 years.
* 204 – Requires audit firm to report to the audit committee: Critical accounting policies, Alternative accounting treatments, Material written communications
* 205 – Defines the term audit committee
* 206 – Prohibits the audit firm from providing audit services for issuer if the CEO, controller, CFO, CAO was employed in the audit practice of the accounting firm during the one-year period prior to the audit.
176
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
* 301 – Makes audit committee responsible for appointment, compensation and oversight of any audit work performed.
* 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report
* 303 – Prohibits a director of an issuer to fraudulently influence, coerce, manipulate, or mislead the auditor.
* 304 – Requires executives of an issuer to forfeit any incentive based pay from the sale of stock, received in the 12 months period after the date of issuance of F/S (Claw-back Policy).
* 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
* 306 – Prohibits trading by officers and directors during blackout periods established between the end of a quarter and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
* 301 – Makes audit committee responsible for appointment, compensation and oversight of any audit work performed.
* 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report
* 303 – Prohibits a director of an issuer to fraudulently influence, coerce, manipulate, or mislead the auditor.
* 304 – Requires executives of an issuer to forfeit any incentive based pay from the sale of stock, received in the 12 months period after the date of issuance of F/S (Claw-back Policy).
* 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
* 306 – Prohibits trading by officers and directors during blackout periods established between the end of a quarter and the earnings report date.
177
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be in_________,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
178
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which m___ be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
179
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes a____ committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
180
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
re________ for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
181
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for ap________t, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
182
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, com________n and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
183
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and ov______t of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
184
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work per____ed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
185
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the ___ to de-list any issuer not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
186
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in com_______ with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
187
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any is____ not in compliance with title III.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 301 – Makes audit committee, which must be independent,
responsible for appointment, compensation and oversight of any audit work performed by the audit firm.
Allows the SEC to de-list any issuer not in compliance with title III.
188
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal ex_______ and principal financial officers to certify, in each annual or quarterly report:
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
189
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial of_____s to certify, in each annual or quarterly report:
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
190
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires pr______l executive and principal financial officers to certify, in each annual or quarterly report:
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
191
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Re_____es principal executive and principal financial officers to certify, in each annual or quarterly report:
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
192
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal f________ officers to certify, in each annual or quarterly report:
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
193
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to ce____y, in each annual or quarterly report:
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
194
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each an_____ or quarterly report:
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
195
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or q______y report:
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are fairly presented
196
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they re____ed the report
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
197
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any un____ statement of material fact or omission of a material fact
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
198
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of m_______ fact or omission of a material fact
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
199
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or o______n of a material fact
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
200
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a m_______ fact
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
201
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material f___ or omission of a material fact
o Financial position and results of operations are fairly presented
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are fairly presented
202
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial po______ and results of operations are fairly presented
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are fairly presented
203
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are f____y presented
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are fairly presented
204
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and re____s of operations are fairly presented
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are fairly presented
205
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of op_______s are fairly presented
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are fairly presented
206
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are fairly pre____ed
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
o That they reviewed the report
o The report does not contain any untrue statement of material fact or omission of a material fact
o Financial position and results of operations are fairly presented
207
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are re________ for establishing and maintaining effective internal control
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
208
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for e________ing and maintaining effective internal control
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
209
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and m______ing effective internal control
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
210
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective i________ c________
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
211
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining ef______ internal control
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
212
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have ev______ed the effectiveness of the controls within 90 days prior to the report
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
213
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the ef________ss of the controls within 90 days prior to the report
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
214
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 ___s prior to the report
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
215
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within __ days prior to the report
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
216
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days p____ to the report
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
217
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the r_____
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
218
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the c______s within 90 days prior to the report
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
219
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls w____n 90 days prior to the report
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
220
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
o Have presented their conclusions as to the ef________ss of internal control
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
o Have presented their conclusions as to the effectiveness of internal control
221
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
o Have p________ed their conclusions as to the effectiveness of internal control
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
o Have presented their conclusions as to the effectiveness of internal control
222
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
o Have presented their co_________s as to the effectiveness of internal control
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
o Have presented their conclusions as to the effectiveness of internal control
223
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
o Have presented their conclusions as to the effectiveness of internal c______
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Officers also certify that they:
o Are responsible for establishing and maintaining effective internal control
o Have evaluated the effectiveness of the controls within 90 days prior to the report
o Have presented their conclusions as to the effectiveness of internal control
224
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant de_______ies in the design or operation of internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
225
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o S________t deficiencies in the design or operation of internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
226
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the d_____ or operation of internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
227
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or o_______n of internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
228
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any f_____, regardless of whether or not material, that involves management or employees involved in internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
229
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not m________, that involves management or employees involved in internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
230
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves m_________ or employees involved in internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
231
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal c_______s
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
232
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing of______s required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
233
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and a____ committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
234
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to dis_____ to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Signing officers required to disclose to auditors and audit committee:
o Significant deficiencies in the design or operation of internal controls
o Any fraud, regardless of whether or not material, that involves management or employees involved in internal controls
235
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Report of signing officers also indicates changes in i______ controls over financial reporting.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Report of signing officers also indicates changes in internal controls over financial reporting.
236
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Report of s___ing officers also indicates changes in internal controls over financial reporting.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report:
Report of signing officers also indicates changes in internal controls over financial reporting.
237
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an o_____ or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the auditor.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the auditor.
238
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to f_________y influence, coerce, manipulate, or mislead the auditor.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the auditor.
239
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently in________e, coerce, manipulate, or mislead the auditor.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the auditor.
240
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, co___e, manipulate, or mislead the auditor.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the auditor.
241
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, m________e, or mislead the auditor.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the auditor.
242
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mis____ the auditor.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the auditor.
243
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the a______.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
303 – Prohibits an officer or director of an issuer
to fraudulently influence, coerce, manipulate, or mislead the auditor.
244
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an is_____
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
245
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bo___ or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
246
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires ex______s of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
247
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or in______e based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
248
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based p__ or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
249
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or pr____s
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
250
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the s___ of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
251
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of s____,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
252
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 ______s period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
253
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
r_____ed in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
254
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the __ months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
255
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of is______ of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
256
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial s_________s
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
257
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the d___ of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
258
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
a____ the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
259
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back P____y).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
260
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an ea_____s restatement
(Claw-back Policy).
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer
to forfeit any bonus or incentive based pay or profits
from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
261
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
What is Claw-back Policy?
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 304 – Requires executives of an issuer to forfeit any bonus or incentive based pay or profits from the sale of stock,
received in the 12 months period
after the date of issuance of financial statements
subject to an earnings restatement
(Claw-back Policy).
262
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any p______ who has violated federal securities laws from serving as an officer or director of an issuer.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
263
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has v_____ed federal securities laws from serving as an officer or director of an issuer.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
264
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated fe______ securities laws from serving as an officer or director of an issuer.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
265
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal se______ies laws from serving as an officer or director of an issuer.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
266
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities l__s from serving as an officer or director of an issuer.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
267
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an of_____ or director of an issuer.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
268
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or di_____ of an issuer.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
269
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an i_____.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
270
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The ___ may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
271
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by o_____s and directors during blackout periods
established between the end of a quarter
and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
272
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and d______s during blackout periods
established between the end of a quarter
and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
273
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout pe____s
established between the end of a quarter
and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
274
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
es______ed between the end of a quarter
and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
275
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established b_______ the end of a quarter
a__ the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
276
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a q______
and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
277
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the e___ings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
278
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings re____ date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
279
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report d___.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
280
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits t___ing by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
281
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – P_______s trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
282
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during b_______ periods
established between the end of a quarter
and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
• 306 – Prohibits trading by officers and directors during blackout periods
established between the end of a quarter
and the earnings report date.
283
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
* 301 – Makes audit committee responsible for appointment, compensation and oversight of any audit work performed.
* 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report
* 303 – Prohibits a director of an issuer to fraudulently influence, coerce, manipulate, or mislead the auditor.
* 304 – Requires executives of an issuer to forfeit any incentive based pay from the sale of stock, received in the 12 months period after the date of issuance of F/S (Claw-back Policy).
* 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
* 306 – Prohibits trading by officers and directors during blackout periods established between the end of a quarter and the earnings report date.
Sarbanes-Oxley Act (SOX)
Title III – Corporate Responsibility
* 301 – Makes audit committee responsible for appointment, compensation and oversight of any audit work performed.
* 302 – Requires principal executive and principal financial officers to certify, in each annual or quarterly report
* 303 – Prohibits a director of an issuer to fraudulently influence, coerce, manipulate, or mislead the auditor.
* 304 – Requires executives of an issuer to forfeit any incentive based pay from the sale of stock, received in the 12 months period after the date of issuance of F/S (Claw-back Policy).
* 305 – The SEC may bar any person who has violated federal securities laws from serving as an officer or director of an issuer.
* 306 – Prohibits trading by officers and directors during blackout periods established between the end of a quarter and the earnings report date.
