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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following regulations is included in the Sarbanes-Oxley Act?

Exemption of public companies from internal control assessments

Elimination of the need for external audits

Mandate for companies to use the cash basis of accounting

Requirement for management to certify the accuracy of financial statements

Previous problemNext problem

Verified step by step guidance

Understand the Sarbanes-Oxley Act (SOX): The Sarbanes-Oxley Act was enacted in 2002 to improve corporate governance and accountability in response to financial scandals. It includes provisions to enhance transparency and prevent fraudulent financial reporting.

Identify the key provisions of SOX: One of the critical requirements under SOX is that management must certify the accuracy of financial statements. This ensures accountability and reduces the risk of misrepresentation in financial reporting.

Eliminate incorrect options: Review the other options provided in the question. The Sarbanes-Oxley Act does not exempt public companies from internal control assessments, eliminate the need for external audits, or mandate the use of the cash basis of accounting. These are not part of SOX regulations.

Focus on the correct regulation: The correct regulation included in SOX is the requirement for management to certify the accuracy of financial statements. This is a key aspect of the Act aimed at improving financial reporting integrity.

Conclude the reasoning: Based on the analysis, the correct answer is the requirement for management to certify the accuracy of financial statements, as it aligns with the goals and provisions of the Sarbanes-Oxley Act.