B1 - M3: SOX

Question 1

What documents filed with the SEC must the CEO and CFO sign?

Answer 1

10K, 10Q, and special certification statements regarding establishment of IC

Question 2

Do issuer’s need to have an audit committee?

Answer 2

Yes and if they don’t they must disclose why not

Question 3

What does SOX require of members of an Audit Committee?

Answer 3

They must be independent and a member of the board of directors

Question 4

What is the penalty for altering, destroying, or covering up false records or documents?

Answer 4

Not more than 20 years in prison

Question 5

Does an individual on the board of directors need to be independent?

Answer 5

No - only members of the audit committee

Question 6

What is the value of a written code of conduct?

Answer 6

Helps management set the tone at the top for the organization

-its existence promotes honest, ethical conduct, teamwork, compliance, and appropriate disclosure