SOX of 2002 - Corporate Responsibility

Question 1

Corporate responsibility relates to

Answer 1

Establishment of Audit Committee

Representations made by Corporate Officers (CEO/CFO)

Question 2

Audit Committes are responsible for

Answer 2

Appointment, compensation and oversight of the work of the Accounting firm

Resolving disputes between Auditor and Management

Question 3

Audit committee members are

Answer 3

members of the board

MUST be independent

Question 4

Auditor reports directly

Answer 4

to the Audit Committee

Question 5

Independent criteria

Answer 5

Not accept compensation for Consulting/Advisory/Etc

Not affiliated with issuer

Question 6

CEO/CFO must sign representation of Annual and Quarterly Reports including statements that they

Answer 6

Reviewed Report

Not contain Untrue statements or omitted Material info

Financial statements are fairly presented in all material respects

They are responsible for I/C

controls are designed that all material info is available to auditor

Any significant changes in I/C

Question 7

What must a CEO and CFO disclose to the Auditor and Audit Committee

Answer 7

Significant Deficiences in the design or operation of I/C

All Fraud

Question 8

CEO and CFO may have to reimburse Issuer for Bonuses, Incentives, equity and gains on sale of stock within the last 12 months if

Answer 8

Issuer is required to restate financials (Material misstatement or omission)

Falsify information about the financial statements

Question 9

Directors or Officers that influence the auditor

Answer 9

Should not happen as this may make the F/S Misleading