Sarbanes Oxley Act, Finance And Accounting

Question: Why are risk factors listed in documentation?
A
To show the company has done its due diligence

B
To force the company to look at procedures and see potential for problems

C
To help employees avoid errors in their work

D
To help management see where employees are most safe

Note: Answer not sure
1. Report
Question: What are the minimum requirements under section 302 of SOX?
A
No sales of securities during a 1 year period

B
Everyone must take a class on SOX

C
Accounting personnel must have security clearance

D
Written procedures, management supervision, process for review

Note: Answer not sure
1. Report
Question: How are companies able to manage the documentation process effectively?
A
By hiring people outside the company to document procedures

B
By having a special project team who oversees the documentation process and keeps the company on track

C
By not doing it

Note: Answer not sure
1. Report
Question: How do independent auditors test the claims of management?
A
Interviews with the management team

B
Interviews with personnel

C
Having them take a lie detector test

D
Testing transactions to see if they were performed in the same way as the company has documented them

Note: Answer not sure
1. Report
Question: What is one way a company can become non compliant with SOX?
A
Document new procedures

B
Have an audit firm review their processes

C
Issue extravagant bonuses to directors

D
Hire new employees

Note: Answer not sure
1. Report
Question: What is the annual requirement of a company under SOX?
A
None, it is a one time implementation

B
They must maintain profitability

C
They must fire 10% of their staff each year

D
They must maintain and update documentation, and pass annual audits

Note: Answer not sure
1. Report
Question: What method may an auditor use to gain confidence in the company's documentation regarding procedures?
A
Redo the paperwork himself

B
Observe personnel performing the task

C
Interview secretaries

Note: Answer not sure
1. Report
Question: What was the magnitude of financial losses due to accounting fraud before the act?
A
Thousands

B
Hundreds

C
Millions

D
Billions

Note: Answer not sure
1. Report
Question: What is a major criticism of documentation?
A
It wastes paper

B
It is costly and time consuming

C
It gives people a written procedure

D
It makes the firm easier to audit

Note: Answer not sure
1. Report
Question: What is the level of crime when management knowingly signs off on compliance documents it knows to be incorrect and misleading?
A
Criminal

B
Civil

C
Global

D
Domestic

Note: Answer not sure
1. Report

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Question: Why are risk factors listed in documentation?

Question: What are the minimum requirements under section 302 of SOX?

Question: How are companies able to manage the documentation process effectively?

Question: How do independent auditors test the claims of management?

Question: What is one way a company can become non compliant with SOX?

Question: What is the annual requirement of a company under SOX?

Question: What method may an auditor use to gain confidence in the company's documentation regarding procedures?

Question: What was the magnitude of financial losses due to accounting fraud before the act?

Question: What is a major criticism of documentation?

Question: What is the level of crime when management knowingly signs off on compliance documents it knows to be incorrect and misleading?