ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 14, Problem 14.4.1E
To determine
Introduction:Foreign corrupt practices act of 1977 was passed to curb corruption practices in U.S based companies. The FCPA has two major sections: Part I prohibits foreign bribes and Part II requires publicly held companies to maintain an adequate system of internal control and accurate records.
To choose:The correct option.
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4 Which of the following is true about the Sarbanes-Oxley Act?A. It was passed to ensure that internal controls are properly documented and tested by publiccompanies.B. It applies to both public and smaller companies.C. It requires all companies to report their internal control policies to the US Securities and ExchangeCommission.D. It does not require additional costs or resources to have adequate controls.
Which of the following is a provision of the Sarbanes-Oxley Act?
a. Lessens penalties for corporate fraud
b.Developed the Consumer Financial Protection Bureau
c. Recommends codes of ethics for financial reporting in corporations
d. Makes fraudulent financial reporting a civil offense
e.Requires greater transparency in financial reporting
Which of the following statements is true of the
Sarbanes−Oxley
Act?
A.
All private and foreign companies must issue an internal control report evaluated by an outside auditor.
B.
Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients.
C.
Those who commit securities fraud must be sentenced to 10 years in prison.
D.
The Public Company Accounting Oversight Board oversees the work of auditors of public companies.
Chapter 14 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 14 - Prob. 14.1QCh. 14 - Prob. 14.2QCh. 14 - Prob. 14.3QCh. 14 - Prob. 14.4QCh. 14 - Prob. 14.5QCh. 14 - Prob. 14.6QCh. 14 - Prob. 14.7QCh. 14 - Prob. 14.8QCh. 14 - Prob. 14.9QCh. 14 - Prob. 14.10Q
Ch. 14 - What type of items that specially involve the...Ch. 14 - Prob. 14.12QCh. 14 - Prob. 14.13QCh. 14 - What types of information must be disclosed in the...Ch. 14 - Prob. 14.15QCh. 14 - Prob. 14.1CCh. 14 - Prob. 14.7CCh. 14 - Prob. 14.8CCh. 14 - Prob. 14.1.1ECh. 14 - Prob. 14.1.2ECh. 14 - Organization Structure and Regulatory Authority of...Ch. 14 - Prob. 14.1.4ECh. 14 - Prob. 14.1.5ECh. 14 - Prob. 14.1.6ECh. 14 - Prob. 14.2.1ECh. 14 - Prob. 14.2.2ECh. 14 - Prob. 14.2.3ECh. 14 - Prob. 14.3.1ECh. 14 - Prob. 14.3.2ECh. 14 - Prob. 14.3.3ECh. 14 - Prob. 14.3.4ECh. 14 - Prob. 14.3.5ECh. 14 - Prob. 14.3.6ECh. 14 - Prob. 14.3.7ECh. 14 - Prob. 14.4.1ECh. 14 - Prob. 14.4.2ECh. 14 - Prob. 14.4.3ECh. 14 - Prob. 14.4.4ECh. 14 - Prob. 14.6.1ECh. 14 - Prob. 14.6.2ECh. 14 - Prob. 14.6.3ECh. 14 - Prob. 14.6.4ECh. 14 - Prob. 14.6.5ECh. 14 - Prob. 14.6.6E
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Similar questions
- What is EDGAR?a. A system the SEC uses to reject registration statements that do not contain adequate information.b. The enforcement arm of the SEC.c. A system designed by the SEC to allow electronic filings.d. A branch of the government that oversees the work of the SEC.arrow_forwardb) Currently, most governments worldwide require business organization to Comply with automated financial controls that are more advanced that previous manual controls. Using suitable illustration, show how any organization of your choice has complied to this requirementarrow_forwardSOX legislation calls for sound internal control practices over financial reporting and requires SEC-registered corporations to maintain systems of internal control that meet SOX standards. An integral part of internal control is the appropriate use of preventive controls. Which of the following is not an essential element of preventive control?a. separation of responsibilities for the recording, custodial, and authorization functionsb. sound personnel practicesc. documentation of policies and proceduresd. implementation of state-of-the-art software and hardwaree. physical protection of assetsarrow_forward
- The Foreign Corrupt Practices Act (FC PA) was implemented in 1977. Why was it enacted, and what are its major provisions?arrow_forwardIndicate whether each of the following statements is true or false. Bribery in the world of business typically happens when an organization or representative of an organization gives financial benefits to an official to gain favor or manipulate a business decision. The Foreign Corrupt Practices Act was implemented in the aftermath of disclosures that businesses were violating the IMA Code of Ethics. Managers are required to follow specific rules issued by the iMA for internal financial reporting. Ethics is more than obeying laws. The Sarbanes-Oxley Act addressed public company accounting reform.arrow_forwardChoose the correct. What is EDGAR?a. A system the SEC uses to reject registration statements that do not contain adequate information.b. The enforcement arm of the SEC.c. A system designed by the SEC to allow electronic filings.d. A branch of the government that oversees the work of the SEC.arrow_forward
- The Sarbanes-Oxley Act (SOX) mandates that all publicly traded US corporations must: Select one: a. Maintain an adequate system of internal controls b. Top management must ensure the reliability of the controls c. Outside independent auditors must attest to the adequacy of the controls d. All of the above.arrow_forwardShelly Eckert has prepared the following list of statements about internal control. Identify each statement as true or false. Iffalse, indicate how to correct the statement. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and a. unauthorized use. One of the objectives of internal control is to enhance the accuracy and reliability of the accounting b. records. C. No laws require U.S. corporations to maintain an adequate system of internal control. >arrow_forwardWhich of the following is not a Sarbanes-Oxley Actrequirement intended to reduce fraud opportunities?a. Increase fines and jail sentences for fraud perpetrators.b. All public companies establish an audit committee ofindependent directors.c. Management of all public companies evaluates andreports on the effectiveness of internal control overfinancial reporting.d. External auditors of large public companies evaluateand report on the effectiveness of internal control overfinancial reporting.arrow_forward
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