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

The Sarbanes-Oxley Act was designed to do which of the following?

Allow companies to delay financial disclosures indefinitely

Eliminate the need for external audits of public companies

Reduce corporate income tax rates for public companies

Improve the accuracy and reliability of corporate financial reporting

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Verified step by step guidance

Understand the purpose of the Sarbanes-Oxley Act (SOX): It was enacted in 2002 in response to major corporate scandals (e.g., Enron, WorldCom) to restore investor confidence and ensure transparency in financial reporting.

Recognize the key provisions of SOX: These include requirements for internal controls, external audits, and certifications of financial statements by company executives to ensure accuracy and reliability.

Eliminate incorrect options: SOX does not allow companies to delay financial disclosures indefinitely, nor does it eliminate the need for external audits. It also does not address corporate income tax rates.

Focus on the correct option: The primary goal of SOX is to improve the accuracy and reliability of corporate financial reporting by enforcing stricter regulations and accountability measures.

Conclude that the correct answer aligns with the purpose of SOX, which is to enhance transparency and trust in financial reporting for public companies.