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

What was one outcome of the Sarbanes-Oxley Act of 2002?

The requirement for all companies to use cash-basis accounting

The elimination of the double-entry accounting system

The removal of auditor independence requirements

The establishment of the Public Company Accounting Oversight Board (PCAOB)

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Verified step by step guidance

Understand the context of the Sarbanes-Oxley Act of 2002, which was enacted to improve corporate governance and restore investor confidence after major accounting scandals like Enron and WorldCom.

Recognize that the Act introduced several reforms, including stricter regulations for financial reporting, auditor independence, and internal controls.

Learn that one key outcome of the Act was the establishment of the Public Company Accounting Oversight Board (PCAOB), which oversees the audits of public companies to ensure compliance with standards and protect investors.

Clarify that the PCAOB is responsible for setting audit standards, inspecting audit firms, and enforcing compliance with regulations to enhance the reliability of financial statements.

Note that the other options provided in the question are incorrect because the Act did not mandate cash-basis accounting, eliminate double-entry accounting, or remove auditor independence requirements; instead, it strengthened auditor independence.