Audit #2.1

Question 1

How many titles are in the Sarbanes-Oxley Act

Answer 1

1. Tittle 1 - Public Accounting Oversight Board
2. Title 2 - Auditor Independence
3. Title 3 Corporate Responsibility
4. Title 4 Enhanced Financial Disclosures
5. Title 5 Analyst Conflict of Interest
6. Title 6 Commission Resources and Authorities
7. Studies and Reports
8. Corporate and Criminal Fraud Accountability
9. White Collar Crime Penalty Enhancements

Question 2

Title 1 - 101 covers what part of the SOX?

Answer 2

101 - Board of PCAOB must have 5 full time members 2 of which need to be financial experts.

Question 3

Title 1 - 103 covers what part of the SOX?

Answer 3

103 - Authorizes Board to establish Auditing Standards

Question 4

Title 1 - 104 covers what part of the SOX?

Answer 4

104 - Provides Quality Control Peer Review Inspections

Question 5

Title 1 - 105 covers what part of the SOX?

Answer 5

105 Gives Board authority to conduct investigation and obtain all relevant info.

Question 6

Title 1 - 108 covers what part of the SOX?

Answer 6

108 - Amends the Security Act of 1933 to allow the SEC to establish, and adopt standards by the PCAOB (ASC)

Question 7

Title 1 - 201 covers what part of the SOX?

Answer 7

201 - Prohibits any registered public accounting firm from providing certain non-audit services to audit clients

Question 8

Title 1 - 202 covers what part of the SOX?

Answer 8

202 - Requires the issuer’s audit committee to pre-approve all auditing and non-auditing services to be provided to an issuer.

Question 9

Title 1 - 302 covers what part of the SOX?

Answer 9

302 - Requires Principal executive and financial officers to certify the financial statements

Question 10

Title 1 - 304 covers what part of the SOX?

Answer 10

304 - Establishes CLAW-BACK POLICY

Question 11

Title 4 - 404 covers what part of the SOX?

Answer 11

Requires management to sign-off on Internal Controls

Question 12

Title 4 - 407 covers what part of the SOX?

Answer 12

Must Disclose the financial expert of the Audit Committee.

Question 13

Private Security Litigation Reform Act of 1995

Answer 13

Requires the following audit test:

• Related Party Transactions
• Illegal Acts
• Going Concern

Question 14

Government Accounting Office (GAO) Government Auditing Standards

Answer 14

Provides Ethical Principles

Provides Independence Principles

• Bias
• structural threat - un-bias