IS3350 CHAPTER 7 Flashcards
A term used in the Sarbanes-Oxley Act. It refers to processes and procedures that a company uses to make sure that it makes timely disclosures to the UUS Securities and Exchange Commission. This is called ___?
DISCLOSURE CONTROLS
Represents a shareholders’s portion of the company’s earnings and is called ___?
DIVIDEND
A report that a public company must file with the US Securities and Exchange Commission. A company must file it within four days of experiencing a major event that affects shareholders and investors and is called ___?
FORM 8-K
A report that a public company must file with the US Securities and Exchange Commission at the end of its fiscal year. It is a detailed and comprehensive report on the company’s financial condition and is called ___?
FORM 10-K
A report that a public company must file with the US Securities and Exchange Commission at the end of each fiscal quarter. It is a report on the company’s financial condition at the end of its first three quarters in a fiscal year and is called _?
FORM 10-Q
A term used in the Sarbanes-Oxley Act. It refers to the processes and procedures that a company uses to provide reasonable assurance that its financial reports are reliable and is called ___?
INTERNAL CONTROLS
A company held by a small group of private investors is called ___?
PRIVATELY HELD COMPANY
A company owned by a number of different investors. Investors own a percentage of the company through stock purchases. The stock of a company is traded on a stock exchange and is called a ___>
?PUBLIC COMPANY
The general term used to describe financial instruments that are traded on a stock exchange. Stocks and bonds are an example. This is called ___?
SECURITIES
- What types of campaniles must follow all Sarbanes-Oxley Act provisions?
- Public
- Private
- Nonprofit
- Governmental
- None of the above
Public
- A dividend is a shareholder’s earnings in a company.
TRUE OR FALSE
TRUE
- What is the main goal of the Sarbanes-Oxley Act?
Protect shareholders and investors from financial fraud.
&
SOX also was designed to restore investor faith in American stock markets.
- How many days after a major event must a company file Form 8-K?
- Two
- Three
- Four
- Five
- None of the above
Four
- Which corporate scandals lead to the creation of the Sarbanes-Oxley Act?
- Enron
- WorldCom
- Adelphia
- Tyco
- All the above
Enron
WorldCom
Adelphia
Tyco
All
- What are internal controls over financial reporting (ICFR)?
Internal controls are the processes and procedures that a company uses to provide reasonable assurance that its financial reports are reliable.
- How many members of the Public Company Accounting Oversight Board may be certified public accountants?
- Five
- Four
- Three
- Two
- None of the above
Two
- Which standard replaced “Auditing Standard No. 2?”
- “Auditing Standard No. 3”
- “Auditing Standard No. 4”
- “Auditing Standard No. 5”
- “Auditing Standard No. 6”
- None of the above
“Auditing Standard No. 5”
- Which framework has the US Securities and Exchange Commission official approved as suitable evaluation criteria for internal controls?
- COBIT
- COSO
- GAIT
- ISO/EIC
- None of the above
COSO
- Which Sarbanes-Oxley Act provision causes the most concern for information technology professionals?
- Section 302
- Section 309
- Section 404
- Section 906
- None of the above
Section 404
- A company/ chief information security office and chief financial officer must sign a section 302 certification.
TRUE OR FALSE
FALSE
- How often must the US Securities and Exchange Commission review a public company’s Form 10-K and Form 10-Q
- Twice a year
- Every year
- Every other year
- Every three years
- Every five years
Every three years
- What does an internal control over financial reporting (ICFR) do?
Provides management with reasonable assurance that:
- Financial report, records, and data are accurately maintained.
- Transactions are prepared according to GAAP rules and are properly recorded.
- Unauthorized acquisition or use of data or assets that could affect financial statements will be prevented or detected in a timely manner.
- Under the Sarbanes-Oxley Act, how many years must public companies keep audit papers?
- Five
- Six
- Seven
- Eight
- None of the above
Seven
- A public company must file a Form 10-K at the end of each quarter.
TRUE OR FALSE
FALSE
