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 requires corporate officers to do which of the following?

Eliminate the use of internal controls

Personally certify the accuracy of financial statements

Prepare tax returns for shareholders

Delegate all financial reporting responsibilities to external auditors

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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, primarily in response to major corporate scandals. It emphasizes the importance of accurate financial reporting and internal controls.

Review the role of corporate officers under SOX: Corporate officers, such as the CEO and CFO, are required to take personal responsibility for the accuracy and completeness of financial statements. This includes certifying that the financial reports are free from material misstatements.

Eliminate incorrect options: The Sarbanes-Oxley Act does not require corporate officers to eliminate internal controls; in fact, it mandates the implementation and assessment of effective internal controls. Similarly, preparing tax returns for shareholders and delegating all financial reporting responsibilities to external auditors are not requirements under SOX.

Focus on the correct requirement: The Act specifically requires corporate officers to personally certify the accuracy of financial statements. This certification ensures accountability and reduces the risk of fraudulent reporting.

Understand the implications: By certifying financial statements, corporate officers can face legal consequences, including fines and imprisonment, if the certification is found to be false or misleading. This reinforces the importance of ethical financial practices and compliance with SOX regulations.