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Business Finance Healthcare Finance: An Introduction to Accounting and Financial Management

The purpose of SOX and some of its provisions. Introduction: By improving the reliability and accuracy of corporate disclosures, SOX sought to strengthen the legislative audit requirements and protect the investors. The SOX was brought into effect on July 30, 2002. It aims to protect the interest of the investors by improving the reliability and accuracy of corporate disclosures. It establishes provisions for overseeing the finance professionals and increase transparency in financial reporting by business entities and corporations through a series of systematized checks and control measures in the entities. SOX encompasses issues such as auditor independence, establishing a public company accounting oversight board, corporate responsibility and financial disclosure. By virtue of implementing financial security controls, SOX also helps corporations achieve security against data theft and cyber-attacks. Some of its provisions include Section 302- CFO and CEO must ensure that the financial reports are being represented fairly. They are also responsible for following internal controls and shall report any deficiencies or material changes in them. Section 401- Financial Statements should be accurate and should contain only correct and material information including all material liabilities, obligations, and transactions that are off- balance sheet . Section 404- Financial reports must include an internal control report mentioning that it is the responsibility of the management to ensure the adequacy of internal controls and that the management should report any deficiencies. This declaration must be verified by external auditors. Section 409- Disclosure of information must be done on a real-time basis to include material changes affecting its financial condition or operations.

The purpose of SOX and some of its provisions. Introduction: By improving the reliability and accuracy of corporate disclosures, SOX sought to strengthen the legislative audit requirements and protect the investors. The SOX was brought into effect on July 30, 2002. It aims to protect the interest of the investors by improving the reliability and accuracy of corporate disclosures. It establishes provisions for overseeing the finance professionals and increase transparency in financial reporting by business entities and corporations through a series of systematized checks and control measures in the entities. SOX encompasses issues such as auditor independence, establishing a public company accounting oversight board, corporate responsibility and financial disclosure. By virtue of implementing financial security controls, SOX also helps corporations achieve security against data theft and cyber-attacks. Some of its provisions include Section 302- CFO and CEO must ensure that the financial reports are being represented fairly. They are also responsible for following internal controls and shall report any deficiencies or material changes in them. Section 401- Financial Statements should be accurate and should contain only correct and material information including all material liabilities, obligations, and transactions that are off- balance sheet . Section 404- Financial reports must include an internal control report mentioning that it is the responsibility of the management to ensure the adequacy of internal controls and that the management should report any deficiencies. This declaration must be verified by external auditors. Section 409- Disclosure of information must be done on a real-time basis to include material changes affecting its financial condition or operations.

Solution Summary: The author explains the purpose of SOX and some of its provisions.

Healthcare Finance: An Introduction to Accounting and Financial Management

Healthcare Finance: An Introduction to Accounting and Financial Management

6th Edition

ISBN: 9781567937411

Author: Louis C. Gapenski, Kristin L. Reiter

Publisher: Health Administration Press

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Chapter 3, Problem 3.4STQ

Chapter 3, Problem 4.1STQ

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Chapter 3 Solutions

Healthcare Finance: An Introduction to Accounting and Financial Management

Ch. 3 - Prob. 1.1STQ Ch. 3 - Prob. 1.2STQ Ch. 3 - Prob. 2.1STQ Ch. 3 - Prob. 2.2STQ Ch. 3 - Prob. 2.3STQ Ch. 3 - Prob. 3.1STQ Ch. 3 - Prob. 3.2STQ Ch. 3 - Prob. 3.3STQ Ch. 3 - Prob. 3.4STQ Ch. 3 - Prob. 3.5STQ

Ch. 3 - Prob. 4.1STQ Ch. 3 - Prob. 4.2STQ Ch. 3 - Prob. 4.3STQ Ch. 3 - Prob. 5.1STQ Ch. 3 - Prob. 5.2STQ Ch. 3 - Prob. 5.3STQ Ch. 3 - Prob. 6.1STQ Ch. 3 - Prob. 6.2STQ Ch. 3 - Prob. 7.1STQ Ch. 3 - Prob. 7.2STQ Ch. 3 - Prob. 7.3STQ Ch. 3 - Prob. 8.1STQ Ch. 3 - Prob. 8.2STQ Ch. 3 - Prob. 8.3STQ Ch. 3 - Prob. 8.4STQ Ch. 3 - Prob. 9.1STQ Ch. 3 - Prob. 9.2STQ Ch. 3 - Prob. 9.3STQ Ch. 3 - Prob. 10.1STQ Ch. 3 - Prob. 10.2STQ Ch. 3 - Prob. 11.1STQ Ch. 3 - Prob. 11.2STQ Ch. 3 - Prob. 12.1STQ Ch. 3 - Prob. 12.2STQ Ch. 3 - Prob. 12.3STQ Ch. 3 - Prob. 13.1STQ Ch. 3 - Prob. 13.2STQ Ch. 3 - Prob. 13.3STQ Ch. 3 - Prob. 13.4STQ Ch. 3 - Prob. 14.1STQ Ch. 3 - Prob. 14.2STQ Ch. 3 - Prob. 14.3STQ Ch. 3 - Prob. 15.1STQ Ch. 3 - Prob. 15.2STQ Ch. 3 - Prob. 16.1STQ Ch. 3 - Prob. 16.2STQ Ch. 3 - Prob. 3.1Q Ch. 3 - Prob. 3.2Q Ch. 3 - Prob. 3.3Q Ch. 3 - Prob. 3.4Q Ch. 3 - Prob. 3.5Q Ch. 3 - Prob. 3.6Q Ch. 3 - Prob. 3.7Q Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Prob. 3.1P Ch. 3 - Prob. 3.2P Ch. 3 - Prob. 3.3P Ch. 3 - Prob. 3.4P Ch. 3 - Prob. 3.5P Ch. 3 - Prob. 3.6P Ch. 3 - Prob. 3.7P Ch. 3 - Prob. 3.8P Ch. 3 - Prob. 3.9P

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