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 is NOT a provision of the Sarbanes-Oxley Act?

Requirement for management to certify the accuracy of financial statements

Mandatory rotation of audit firms every three years

Increased penalties for fraudulent financial activity

Establishment of the Public Company Accounting Oversight Board (PCAOB)

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 major financial scandals. It includes provisions to enhance transparency, prevent fraud, and ensure the accuracy of financial reporting.

Review the listed provisions: Carefully examine each option provided in the question to determine whether it aligns with the requirements of the Sarbanes-Oxley Act.

Analyze the first option: 'Requirement for management to certify the accuracy of financial statements'—this is a key provision of SOX under Section 302, which mandates that senior management must certify the accuracy of financial reports.

Analyze the second option: 'Mandatory rotation of audit firms every three years'—this is NOT a provision of SOX. While SOX emphasizes auditor independence, it does not require mandatory rotation of audit firms every three years. Instead, it requires rotation of the lead audit partner every five years.

Analyze the remaining options: 'Increased penalties for fraudulent financial activity' and 'Establishment of the Public Company Accounting Oversight Board (PCAOB)'—both are provisions of SOX. The PCAOB was established to oversee the audits of public companies, and SOX increased penalties for fraud to deter unethical behavior.