/ Homework Answers / Accounting / 11) For both public and privately held companies, the Sarbanes-Oxley


11) For both public and privately held companies, the Sarbanes-Oxley Act of 2002 (SOA) imposes certain requirements and restrictions on management, auditors, and company audit committees.

12) The CEO and CFO must prepare a statement to accompany the audit report to certify that the company's reported financial statements are presented fairly in all material respects.

13) The Sarbanes-Oxley Act of 2002 (SOA) allows the purchase or sale of stock by officers and directors and other insiders during blackout periods.

14) Many companies have adopted ethics codes of conduct which provide guidance for conducting business in an ethical manner.

15) Some believe that every corporation has its own corporate culture, and it is such a culture that ultimately either promotes or hinders ethical behavior within the corporation.

16) Most control processes can function irrespective of the competence of employees.

17) The board of directors serves as an interface between the stockholders of an organization and its operating management.

18) Audit committees are usually charged with evaluation and assessment of a corporation's internal control processes.

19) Control is established in the budgeting process by comparing the results of activity to the budget for each activity.

20) The third component of internal control is risk assessment.

5 (1 Ratings )

Accounting 1 Week Ago 8 Views
This Question has Been Answered!
Premium Content -