It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc. To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Warren Supply Inc. wants to use debt and common equity for its capital budget of $800,000 in the coming year, but it will not issue any new common stock. It is forecasting an EPS of $3.00 on its 500,000 outstanding shares of stock and is committed to maintaining a $2.00 dividend per share. Given these constraints, what percentage of the capital budget must be financed with debt? a. 33.84% b. 37.50% c. 32.15% d. 30.54% e. 35.63%

Eccles Inc., a zero-growth firm, has an expected EBIT of $100.000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. What is the firm's cost of equity according to MM with corporate taxes? Ο 32.0% Ο 25.9% Ο 21.0% Ο 28.8% Ο 23.3%

P&L Corporation wants to sell some 20-year, annual interest, $1,000 par value bonds. Its stock sells for $42 per share, and each bond would have 75 warrants attached to it each exercisable into one share of stock at an exercise price of $47. The firm's straight bonds yield 10%. Each warrant is expected to have a market value of $2.00 given that the stock sells for $42. What coupon interest rate must the company set on the bonds in order to sell the bonds with-warrants at par? a. 9.54% b. 8.65% c. 9.08% d. 8.24% e. 83%

Answer 2

Question

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Answer 6

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Answer 7

Chapter 7, Problem 7.1RQ

To determine

Concept Introduction:

It is the responsibility and duty of management to ensure that requirements of the Section 404 and other requirements of Sarbanes-Oxley Act of 2002 is to be complied with and cannot be delegated. Many of the activities are to be done by the Internal auditors in supporting the organization like project oversight, project audit etc.

To discuss: The management and auditor’s basic responsibilities under Section 404 of Sarbanes-Oxley Act of 2002.

Answer 8

Expert Solution & Answer

Explanation of Solution

The management responsibilities are:

The Evaluation is to be supported by giving sufficient evidences which can include the documentations also.
The effectiveness of the entity’s ICFR to be evaluated using the most suitable criteria.
The Assessment of Effectiveness of entity’s ICFR in a written manner to be present in end of entity’s most recent fiscal year.

The Auditor’s responsibilities are:

The Auditor should take reasonable assurance about the effective internal controls that the entity maintained by conducting audit.
The Auditor has to give an opinion on effectiveness of entity’s internal control over the financial reporting.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 7 - Prob. 7.1RQ Ch. 7 - Prob. 7.2RQ Ch. 7 - Prob. 7.3RQ Ch. 7 - Prob. 7.4RQ Ch. 7 - Prob. 7.5RQ Ch. 7 - Prob. 7.6RQ Ch. 7 - Prob. 7.7RQ Ch. 7 - Prob. 7.8RQ Ch. 7 - Prob. 7.9RQ Ch. 7 - Prob. 7.10RQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 7 Solutions