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

Under the Sarbanes-Oxley Act, how are employees protected when they file a claim regarding corporate fraud or violations of securities laws?

They are protected from retaliation, such as termination or demotion, for reporting suspected fraud.

They must wait until an investigation is complete before receiving any protection.

They are required to report only to their immediate supervisor to receive protection.

They are only protected if they file a claim anonymously.

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Verified step by step guidance

Understand the Sarbanes-Oxley Act (SOX): The Sarbanes-Oxley Act was enacted in 2002 to protect investors from fraudulent financial reporting by corporations. It includes provisions to safeguard whistleblowers who report corporate fraud or violations of securities laws.

Identify the whistleblower protection clause: SOX specifically protects employees from retaliation, such as termination, demotion, or harassment, when they report suspected fraud or violations of securities laws. This protection applies regardless of whether the claim is filed anonymously or not.

Clarify the reporting process: Employees are not required to report only to their immediate supervisor to receive protection. They can report to appropriate authorities, such as the Securities and Exchange Commission (SEC) or internal compliance departments.

Understand the timing of protection: Employees are protected from retaliation immediately upon reporting suspected fraud or violations, and they do not need to wait until an investigation is complete to receive protection.

Summarize the correct answer: The correct answer is that employees are protected from retaliation, such as termination or demotion, for reporting suspected fraud under the Sarbanes-Oxley Act.