BUSN 314

Chapter 8:  Sarbanes Oxley, Internal Control, and Cash Chapter 8 discusses the creation of the Sarbanes Oxley Act of 2002.  The act is commonly known by the acronym "SOX."  The act established the Public Companies Accounting Oversight Board.  This board is sometimes known as the "Peek-a-Boo" which serves as what may be a very appropriate acronym.  Please let us know why the Public Companies Accounting Oversight Board has come to be known as the "Peek-a-Boo."  Please use the link below to access the Sarbanes Oxley Act of 2002 and include it. http://www.soxlaw.com/ (Links to an external site.)

QUESTION 22 Match the term on the left with the appropriate definition or description on the left. A. A requirement of the Sarbanes-Oxley Act B. A group of measures intended to reduce or detect fraud C. A framework for assessing the risk of fraud D. The set of accounting rules that publicly traded companies must follow v Fraud triangle v Audited financial statements v Internal controls v Segregation of duties E. One specific measure taken to reduce the opportunity for fraud F. A licensing requirement for auditors of public firms v Cerified Public Accountant v GAAP

What has been the main thrust of recent changes in the financial reporting rules following the financial scandals of Enron, Worldcom, etc.? Multiple Choice To improve internal control over companies' financial reporting. To add to the work of the companies' external accountants. To force the companies to disclose more of their internal information. To provide incentives to increase their net income. < Prev 27 of 50 Next

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Please answer all 3 subparts Question 1 (i) Which of the following statements is true?A. Conflicts of interests between management and stakeholders can result in bankruptcies or major frauds.B. It is the responsibility of internal audit to design and monitor controls that reasonably assure that objectives are met.C. Corporate Governance addresses the principal-agent relationship between management and directors on the one hand and the relationship between the company and suppliers on the other.D. The management board apprves the mission, vision, objectives and strategy of the entity. (ii) Which one of the following is NOT a reason for having board committees?A. An increase in the accountability of the board to the firm by reducing individual free-riding and enabling outside directors.B. A better performance of the board of directors by allowing a better monitoring through greater separation from management.C. Bringing a focus and appropriate expertise and specialisation to the…

Question 8 organizations use the GAAP framework of internal control as a benchmark when assessing the effectiveness of internal control over financial reporting.  True  False

QUESTION 3 For each situation below identify the threat and one fundamental principle that is comprised. a) An auditor has shares in a company which is an audit client of theirs. b) An accountant has compiled the financial statements for a client and was requested to also audit the statements. c) The financial director of Baboo Ltd is very aggressive and dismissive of the audit function and audit team d) A chartered accountant values a client's shares and then leads the negotiations on the sale of the client's company e) The chartered accountant fails to report a fraud at a client because the perpetrator is a close friend and he is sympathetic to the interest of his friend.