SOX (B1:M3)

Question 1

who is responsible for establishing whistle-blower procedures?

Answer 1

audit committee

Question 2

who must sign representations?

Answer 2

CEO and CFO

Question 3

who assumes responsibility for internal controls?

Answer 3

CEO and CFO

Question 4

if financial statements must be restate, what may CEO and CFO be required to do?

Answer 4

reimburse company.

bonuses; gains on sale of securities; incentive/equity based comp

Question 5

disclosures are required for persons who have direct or indirect ownership of more than what %?

Answer 5

10%

Question 6

what is section 404 of SOX?

Answer 6

requires each annual report to have a report containing a statement that management is responsible for ESTABLISHING and MAINTAINING adequate internal controls and that internal controls are effective.

Auditor attests to management’s assessment

Question 7

what must a code of ethics promote?

Answer 7

honest and ethical conduct

full, fair, accurate, and timely disclosures (FACT)

compliance with laws

Question 8

audit committees should have a financial expert, is the company required to disclose?

Answer 8

yes, must disclose whether or not committee has financial expert