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

Which of the following is required by the Sarbanes-Oxley Act?

Elimination of all internal controls

Public disclosure of all employee salaries

Certification of financial statements by the CEO and CFO

Mandatory quarterly audits by the IRS

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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 focuses on enhancing internal controls, financial reporting, and the responsibilities of corporate executives.

Review the requirements of SOX: The act mandates several key provisions, including the certification of financial statements by the CEO and CFO, the establishment of internal controls, and increased transparency in financial reporting. It does not require the elimination of internal controls or public disclosure of employee salaries.

Analyze the options provided: Evaluate each option against the requirements of SOX. For example, SOX emphasizes the importance of internal controls rather than eliminating them, and it does not mandate public disclosure of employee salaries or quarterly audits by the IRS.

Focus on the correct requirement: The certification of financial statements by the CEO and CFO is a specific provision under SOX. This ensures accountability and accuracy in financial reporting, as executives must attest to the reliability of the company's financial statements.

Conclude the correct answer: Based on the analysis, the correct answer is 'Certification of financial statements by the CEO and CFO,' as this aligns directly with the requirements of the Sarbanes-Oxley Act.