The Sarbnaes Oxley Act and Corporate Governance MATERIALS w RQs 2014
THE SARBANES-OXLEY ACT
AND CORPORATE GOVERNANCE
1
DELTA PUBLISHING COMPANY
P.O. Box 5332, Los Alamitos, CA 90721-5332
All rights reserved. No part of this course may be reproduced in any form or by any means, without permission in writing from the publisher.
2
THE SARBANES-OXLEY ACT
AND CORPORATE GOVERNANCE
PROGRAM CONTENTS
ACCOUNTING SCANDALS BRING ABOUT NEW GUIDELINES AND
LEGISLATION
POINTS OF CONTROVERSY
RECENT FINANCIAL RESTATEMENTS
STOCK OPTIONS CONTROVERSY: TO EXPENSE OR NOT TO EXPENSE
FASB NO. 123 (ACCOUNTING FOR STOCK-BASED COMPENSATION)
FASB NO. 123R (REVISED 2004) (ASC 718-10-05) REQUIRES OPTIONS
EXPENSING
STOCK OPTIONS BACKDATING: ILLEGAL PRACTICE
FASB’S CONSOLIDATION PRINCIPLES FOR SPECIAL-PURPOSE ENTITIES
(SPEs)
THE NEW YORK STOCK EXCHANGE’ S CORPORATE GOVERNANCE RULES
SEC APPROVES RULES TO ADDRESS ANALYST CONFLICTS
SEC TIGHTENS ITS DEADLINES FOR DISCLOSURE
THE ASSOCIATION FOR INVESTMENT MANAGEMENT AND
RESEARCH’SPROPOSAL: THE OBJECTIVITY OF ANALYSTS' STOCK
RESEARCH
THE SARBANES-OXLEY ACT (CORPORATE RESPONSIBILITY LAW)
CORPORATE GOVERNANCE
COMPUTER SOFTWARE AND INFORMATION TECHNOLOGIES
THAT LENDS A HELPING HAND TO COMPLIANCE
S E C T I O N 4 0 4 O F T HE SARBANES-OXLEY ACT
THE SOX SECTION 302 AND SECTION 906 CONSIDERATIONS
GOOD GOVERNANCE
CORPORATE SOCIAL RESPONSIBILITY
BUSINESS ETHICS
APPENDIX I
SUMMARY OF SARBANES-OXLEY ACT OF 2002
APPENDIX II
FULL TEXT OF SARBANES-OXLEY ACT OF 2002
APPENDIX
SARBANES-OXLEY COMPLIANCE PRACTICE AID
AUDITOR INDEPENDENCE SELF-ASSESSMENT QUESTIONNAIRE
CORPORATE RESPONSIBILITY SELF-ASSESSMENT QUESTIONNAIRE
GLOSSARY
3
THE SARBANES-OXLEY ACT
AND CORPORATE GOVERNANCE
LEARNING OBJECTIVES:
After studying this course you will be able to:
1.
2.
3.
4.
5.
6.
7.
8.
List and describe each of the sources of accounting irregularities and scandals.
Explain the Enron debacle and its major reasons.
Give some examples of recent financial restatements.
Define Special Purpose Entities
AND CORPORATE GOVERNANCE
1
DELTA PUBLISHING COMPANY
P.O. Box 5332, Los Alamitos, CA 90721-5332
All rights reserved. No part of this course may be reproduced in any form or by any means, without permission in writing from the publisher.
2
THE SARBANES-OXLEY ACT
AND CORPORATE GOVERNANCE
PROGRAM CONTENTS
ACCOUNTING SCANDALS BRING ABOUT NEW GUIDELINES AND
LEGISLATION
POINTS OF CONTROVERSY
RECENT FINANCIAL RESTATEMENTS
STOCK OPTIONS CONTROVERSY: TO EXPENSE OR NOT TO EXPENSE
FASB NO. 123 (ACCOUNTING FOR STOCK-BASED COMPENSATION)
FASB NO. 123R (REVISED 2004) (ASC 718-10-05) REQUIRES OPTIONS
EXPENSING
STOCK OPTIONS BACKDATING: ILLEGAL PRACTICE
FASB’S CONSOLIDATION PRINCIPLES FOR SPECIAL-PURPOSE ENTITIES
(SPEs)
THE NEW YORK STOCK EXCHANGE’ S CORPORATE GOVERNANCE RULES
SEC APPROVES RULES TO ADDRESS ANALYST CONFLICTS
SEC TIGHTENS ITS DEADLINES FOR DISCLOSURE
THE ASSOCIATION FOR INVESTMENT MANAGEMENT AND
RESEARCH’SPROPOSAL: THE OBJECTIVITY OF ANALYSTS' STOCK
RESEARCH
THE SARBANES-OXLEY ACT (CORPORATE RESPONSIBILITY LAW)
CORPORATE GOVERNANCE
COMPUTER SOFTWARE AND INFORMATION TECHNOLOGIES
THAT LENDS A HELPING HAND TO COMPLIANCE
S E C T I O N 4 0 4 O F T HE SARBANES-OXLEY ACT
THE SOX SECTION 302 AND SECTION 906 CONSIDERATIONS
GOOD GOVERNANCE
CORPORATE SOCIAL RESPONSIBILITY
BUSINESS ETHICS
APPENDIX I
SUMMARY OF SARBANES-OXLEY ACT OF 2002
APPENDIX II
FULL TEXT OF SARBANES-OXLEY ACT OF 2002
APPENDIX
SARBANES-OXLEY COMPLIANCE PRACTICE AID
AUDITOR INDEPENDENCE SELF-ASSESSMENT QUESTIONNAIRE
CORPORATE RESPONSIBILITY SELF-ASSESSMENT QUESTIONNAIRE
GLOSSARY
3
THE SARBANES-OXLEY ACT
AND CORPORATE GOVERNANCE
LEARNING OBJECTIVES:
After studying this course you will be able to:
1.
2.
3.
4.
5.
6.
7.
8.
List and describe each of the sources of accounting irregularities and scandals.
Explain the Enron debacle and its major reasons.
Give some examples of recent financial restatements.
Define Special Purpose Entities