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

The Sarbanes-Oxley Act requires corporate officers to:

Personally prepare all journal entries for the company.

Set the company's stock price at the end of each quarter.

Approve all employee expense reports.

Certify the accuracy and completeness of financial statements.

Previous problemNext problem

Verified step by step guidance

Understand the Sarbanes-Oxley Act (SOX): This legislation was enacted in 2002 to improve corporate governance and accountability, primarily in response to financial scandals. It focuses on ensuring the accuracy and reliability of financial reporting.

Identify the role of corporate officers under SOX: Corporate officers, such as the CEO and CFO, are required to certify the accuracy and completeness of the company's financial statements. This certification is a legal requirement to ensure transparency and accountability.

Eliminate incorrect options: Review the options provided in the problem. Corporate officers are not required to personally prepare journal entries, set stock prices, or approve expense reports under SOX. These tasks are typically delegated to other departments or professionals within the company.

Focus on the correct requirement: The key responsibility of corporate officers under SOX is to certify the accuracy and completeness of financial statements. This involves reviewing the financial reports and ensuring they comply with accounting standards and regulations.

Understand the implications: Certifying financial statements under SOX carries significant legal consequences. If corporate officers knowingly certify inaccurate statements, they may face penalties, including fines and imprisonment, emphasizing the importance of ethical financial reporting.