Accounting Appendix I Homework Minutes Many Relatively Short Sox

Appendix I – The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

App I-1

APPENDIX I

The Sarbanes-Oxley Act, Internal Controls, and

Management Accounting

ANSWERS TO REVIEW QUESTIONS

I-1 The Sarbanes-Oxley Act of 2002 was enacted by the U.S. Congress to bring about

I-2 Internal controls over financial reporting refers to the broad set of policies,

processes, and procedures that enable both the organization’s management and

I-3 The Public Company Accounting Oversight Board (PCAOB) is an agency established

I-4 SOX 302 is a section of the Sarbanes-Oxley Act, which requires the signing officers

I-5 SOX 404 is a section of the Sarbanes-Oxley Act, which requires a company to

I-6 SOX sections 302 and 404 are controversial because they place a great burden on

businesses to document and report on their internal controls over financial

Appendix I – The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

App I-2

SOLUTIONS TO EXERCISES

EXERCISE I-7 (15 MINUTES)

Answers will vary depending on each students work experience and the college the student

EXERCISE I-8 (15 to 30 MINUTES)

EXERCISE I-9 (30 MINUTES)

EXERCISE I-10 (30 to 45 MINUTES)

EXERCISE I-11 (15 MINUTES)

Some observers have suggested that it is unrealistic to expect a company to regularly

EXERCISE I-12 (15 MINUTES)

The company’s internal control system is flawed. The same employee is responsible for

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EXERCISE I-12 (CONTINUED)

records and the count.

SOX sections 302 and 404 require the company’s management to establish, maintain,

EXERCISE I-13 (20 MINUTES)

The accounting adjustments contemplated by John Winslow are unethical because they will