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 a key provision of the Sarbanes-Oxley Act?

Establishment of the Public Company Accounting Oversight Board (PCAOB)

Abolishment of internal control reporting requirements

Reduction of penalties for securities fraud

Elimination of the requirement for external audits of public companies

Previous problemNext problem

Verified step by step guidance

Understand the context of the Sarbanes-Oxley Act (SOX), which was enacted in 2002 to address corporate fraud and improve the reliability of financial reporting.

Review the key provisions of SOX, including the establishment of the Public Company Accounting Oversight Board (PCAOB), which oversees the audits of public companies to ensure compliance with standards.

Clarify that SOX strengthens internal control reporting requirements rather than abolishing them. It mandates management to assess and report on the effectiveness of internal controls over financial reporting.

Note that SOX increases penalties for securities fraud rather than reducing them, aiming to deter fraudulent activities.

Explain that SOX does not eliminate the requirement for external audits of public companies; instead, it reinforces the importance of independent audits to ensure transparency and accountability.