Sarbanes-Oxley Act of 2002

Question 1

Sarbanes Oxley

Answer 1

Profound effect on the “financial reporting” requirements of PUBLIC company

Question 2

Corporate Responsibility

Answer 2

Audit Committee
CEO/CFO representatives
Penalty - $millions
10 years in jail

Question 3

Auditor

Answer 3

Reports to the audit committee

Question 4

Audit Committee

Answer 4

Resolve disputes between auditor and management

Question 5

Audit Committee should be

Answer 5

INDEPENDENT

Question 6

CEO/CFO

Answer 6

must sign representations regarding reports

they are responsible for the internal controls

Question 7

Auditors must

Answer 7

cooperate

Question 8

Enhanced Financial Disclosures

Answer 8

Internal Controls

Audit Committee

Question 9

Principal stockholders

Answer 9

More than 10% of stock

Question 10

Auditor

Answer 10

Issues opinion about internal controls

Question 11

Code of Ethics

Answer 11

• Honest and Ethical
  Full, Fair, Accurate, and Timely Disclosures
  Compliance with Laws, rules, regulations

Question 12

Need atleast one

Answer 12

financial expert (CPA or Management)
Knowledge and apply GAAP
Experience with internal controls

Question 13

SEC

Answer 13

Required to review disclosures made by issuers..check paperwork for completeness
Reviewing issuers

Question 14

Statute of Limitations

Answer 14

2 years after discovery or 5 years after violation

Question 15

Issuers must have an

Answer 15

audit committee