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 internal control provisions of the Sarbanes-Oxley Act (SOX) apply to which companies in the United States?

Only companies with annual revenues exceeding $1 billion

All privately held companies

Nonprofit organizations

All publicly traded companies

Previous problemNext problem

Verified step by step guidance

Understand the Sarbanes-Oxley Act (SOX): SOX was enacted in 2002 to improve corporate governance and accountability, primarily targeting publicly traded companies to ensure transparency and prevent fraud.

Identify the scope of SOX: The internal control provisions of SOX apply specifically to publicly traded companies in the United States. These companies are required to establish and maintain effective internal controls over financial reporting.

Clarify exclusions: SOX does not apply to privately held companies, nonprofit organizations, or companies based solely on revenue thresholds. Its focus is on companies listed on stock exchanges or those required to file reports with the SEC.

Review the requirements for compliance: Publicly traded companies must comply with SOX provisions, including Section 404, which mandates management and external auditors to report on the adequacy of internal controls.

Conclude the applicability: The correct answer is 'All publicly traded companies,' as SOX provisions are designed to regulate entities that trade shares publicly to protect investors and ensure financial integrity.