Section 404 of the Sarbanes-Oxley Act of 2002 (SOX) requires thatO public companies disclose if they have adopted a code of ethics for its senior officers.O management of public companies recognize their responsibility for establishing internal controls and provide an assessmentof the effectiveness of those internal controls.O public and private companies disclose if they have adopted a code of ethics company-wide.O CEOs and CFOs of publicly traded companies certify the accuracy of their reported financial information.

Public companies disclose if they have adopted a code of ethics for its senior officers.This…

Answered: Section 404 of the Sarbanes-Oxley Act…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is correct? A.The external auditor is responsible for the preperation of a company's financial statements. B.Audit commitees are now compulsory for the top 500 companies C.An audit commitee may be responsible for reviewing policies on internal control procedures D.Corporate governance can provide assurances that management is accountable for the actions
The Sarbanes-Oxley Act of 2002 has created more stringent legal standards for corporate boards and management committees. Senior and executive officers of a company must now: Group of answer choices D. Both A & B B. Certify that all material facts surrounding operations and cash flows are correct. C. All must be financial experts in attesting to the accuracy of the reports. A. Ensure quarterly and annual financial reports are filed with the SEC.
The American Competitiveness and Corporate Accountability Act of 2002 is otherwise known as the Sarbanes-Oxley Act. Provisions of this law significantly affected capital markets, corporate governance and the Accountancy Profession especially the area on auditing. true or false?
Audit committees have an essential role to play in ensuring the integrity and transparency of corporate reporting. The external auditor will normally report to the audit committee on all the following matters except: Select one: a.Detected frauds. b.Future staff requirements of the audit firm. c.Potential breach of Corporation Act 2001. d.The management responsibility in presenting annual financial reports.
From the article below, 1) What caused the SEC to question EY's independence? 2). Explain the findings in the history for EY's other instances where its independence was called into question. Accounting reform occurred after significant corporate misconduct was discovered in the early 1980s. Some of the reform sought to require public companies to put the hiring and pay of their auditors in the hands of an independent audit board committee. There has been concern that management still has significant influence on the evaluation and final decisions. Phillip Lamoreaux, an accounting professor at Arizona State University, conducted a study of more than 2,000 auditor changes in publicly traded companies. He found that companies whose top executives had worked with a Big Four accounting firm were twice as likely to select that firm. Many executives make their way into corporate America through the largest accounting firms in the world. A chief accountant in the Securities and Exchange…
Why are vice presidents and other executive managers who are privy to financial performance data considered insiders to a publicly traded company as defined by the Securities and Exchange Commission (SEC)?
Managing business risk is the responsibility of the: * Customers Management Public Company Accounting Oversight Board (PCAOB) Government None of the above
What does the Sarbanes-Oxley Act of 2002 require the CEO and CFO to do? Multiple Choice All of these are requirements of the Sarbanes-Oxley Act of 2002. Take responsibility for signing financial statements. Stipulate that the financial statements do not omit material information. Disclose that they have evaluated the company's internal controls. Disclose that they have notified the company's auditors and the audit committee of the board of any fraud that involves management.
True or False Independent Auditor is responsible for preparing the financial statements, establishing and maintaining adequate internal control over financial reporting (ICFR), and evaluating the effectiveness of ICFR. * Under Sarbanes–Oxley Section 301 public company audit committees are directly responsible for the appointment, compensation, and oversight of the work of any registered public accounting firm employed by their company. * Auditors are required by the Security and Exchange Commission to report to the audit committee of the publicly-traded company all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management officials. * CFO and the audit committee depend heavily on one another * Included in the Environment disclosures are the risks and opportunities due to climate change, procurement practices with respect to local suppliers, and anti-corruption *
According to the Institute of Internal Auditor's position paper on the three lines corporate governance model, which group is responsible for owning risks and developing corrective measures and internal controls to mitigate business and IT-related risks: a) first line b) second line c) third line d) Internal audit, at the direction of the Audit Committee
Which of the following is true of the Audit Committee? O It is composed of a group of stockholders. O It includes both the internal auditors and the external auditors of a company. It is the group that conducts the audit of a company. Its main purpose is to report errors on the company's financial statements to the SEC. It is another term for the internal auditing department of a company.
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