SOX: Title IV - Enhanced Financial Disclosures

Question 1

Management must include in it’s periodic reports

Answer 1

1) Material correcting adjustments identified by the auditor
2) material off balance sheet transactions
3) conformity to pro forma F/S (no false statements/omitted material, reconciled with GAAP)
4) use of Special Purpose Entities

Question 2

Disclose any parties that have

Answer 2

direct or indirect ownership of more than 10% of any class of equity securities

Question 3

Management must

Answer 3

assess the company’s internal controls and disclose that assessment

Question 4

Issuer Must

Answer 4

disclose if senior official adopted a code of ethics.

if not they must explain why

Question 5

Audit Committee must

Answer 5

have a financial expert

Question 6

Financial expert is an individual

Answer 6

who has expertise developed through education and experience as an

auditor or finance officer for an organization of similar complexity

Question 7

Financial expert

Answer 7

must be disclosed