Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Sarbanes-Oxley Act

Financial Accounting

6. Internal Controls and Reporting Cash

Sarbanes-Oxley Act

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Multiple Choice

How does the Sarbanes-Oxley Act of 2002 affect information security managers in publicly traded companies?

It requires them to implement controls that ensure the integrity and accuracy of financial data.

It exempts them from responsibility for data breaches involving financial information.

It only applies to private companies and has no impact on information security managers.

It focuses solely on tax compliance and does not address information security.

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Verified step by step guidance

Understand the Sarbanes-Oxley Act of 2002 (SOX): This legislation was enacted to protect investors by improving the accuracy and reliability of corporate disclosures. It applies to publicly traded companies and emphasizes the importance of internal controls over financial reporting.

Identify the role of information security managers: Information security managers are responsible for ensuring the integrity, confidentiality, and availability of data, including financial data. Under SOX, they play a critical role in implementing controls to safeguard financial information.

Analyze the requirements of SOX: The act mandates that companies establish and maintain internal controls to ensure the accuracy and integrity of financial data. This includes implementing measures to prevent unauthorized access, data breaches, and tampering with financial records.

Evaluate the incorrect options: The statement that SOX exempts information security managers from responsibility for data breaches is incorrect because SOX emphasizes accountability. Similarly, the claim that SOX only applies to private companies is false, as it specifically targets publicly traded companies. Lastly, the assertion that SOX focuses solely on tax compliance is incorrect, as it addresses broader financial reporting and internal control requirements.

Conclude with the correct answer: The correct interpretation is that SOX requires information security managers to implement controls that ensure the integrity and accuracy of financial data, aligning with the act's purpose of enhancing corporate accountability and transparency.