Sarbanes Oxley

Question 1

SOX

Answer 1

Sarbanes Oxley act of 2002

Question 2

Sox was passed to

Answer 2

help protect investors from fraudulent financial reporting by corporations.

Question 3

Sox is the result of ____ _____ in the early 2000’s

Answer 3

Financial scandals

Question 4

Sox enacted stricter reforms to ___ ____ and tougher _____ on lawbreakers

Answer 4

securties regulation; penalties

Question 5

Sponsors of the SOX act are

Answer 5

Michael Sarbanes of MD and Rep Oxley of OH

Question 6

Sox is enforced by the ___

Answer 6

SEC

Question 7

SEC

Answer 7

Security Exchange Comission

Question 8

SOX is a supplement to ____

Answer 8

Security Exchanges Act of 1934

Question 9

SOX is meant to reform 4 key areas

Answer 9

corporate responsibility, Increased Criminal Penalties, Accounting Regulation, New Protections

Question 10

SOX Sect. 302 mandates that __ ___ ____ must personally certify that the company’s ___ ___ comply with SEC disclosure requirements and fairly represent in all material aspects the operations and financial condition of the issuer” Officers who sign off on statements they know to be ______ are subject to ____ ____ including ____

Answer 10

Senior corporate officers; financial statements; inaccurate; criminal penalties; prison

Question 11

SOX Sect 404 requires that _____ and _____ establish _____ controls and reporting methods to ensure the adequacy of those controls.

Answer 11

management; auditors, internal

Question 12

SOX Sect 802 contains the three rules that affect ______ . The first deals with ______ ____ _____ of records. The second strictly defines the retention period for _____ records. The third rule outlines the specific business _____ that companies need to store, which includes______ ______.

Answer 12

recordkeeping; destruction and falsification ; storing ; records; electronic communications

Question 13

internal controls are _____, ____, and ____ implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Answer 13

mechanisms; rules;procedures;

Question 14

An Audit trail is

Answer 14

a step-by-step record by which accounting or trade data can be traced to its source.

Question 15

internal auditors are

Answer 15

trained professionals tasked with providing independent and objective evaluations of company financial and operational business activities.

Question 16

The main job of an internal auditor (IA) is to

Answer 16

identify problems and correct them before they are discovered during an external audit by an outside firm or regulatory agencies, such as the Securities and Exchange Commission (SEC).

Question 17

Internal audits evaluate a company’s ____ ___, including its corporate governance and accounting processes.

Answer 17

internal controls

Question 18

preventative controls aim to deter ___ ____ ___

Answer 18

errors and fraud

Question 19

separation of duties ensures

Answer 19

that no single individual is in a position to authorize, record, and be in the custody of a financial transaction and the resulting asset.

Question 20

Authorizations and verifications are examples of

Answer 20

internal controls

Question 21

limiting access to assests and inventory are examples of

Answer 21

internal controls

Question 22

detective controls are

Answer 22

backup procedures that are designed to catch items or events that have been missed by the first line of defens

Question 23

reconcilliatops and external audits are examples of

Answer 23

detective controls

Question 24

controls can be circumvented by

Answer 24

collusion