Internal control

Question 1

According to the Sarbanes-Oxley Act of 2002, anyone who knowingly alters, destroys, covers up, or makes a false entry in any record or document with the intent to obstruct or influence the investigation of any matter within the jurisdiction of any department or agency of the United States may be fined and/or imprisoned for up to:

Answer 1

20 years

Question 2

A public company audit committee’s “financial expert” must have all of the following

Answer 2

SOX does not require that a “financial expert” have experience on a compensation committee.

1. It does require that she have an understanding of GAAP and GAAS, an ability to assess the general application of these principles
2. experience in preparing, auditing, analyzing or evaluating F/S
3. an understanding of internal controls and procedures for financial reporting
4. An understanding of audit committee functions.