Lab1 Assessment
Lab #1 – Assessment Worksheet
Assess the Impact of Sarbanes-Oxley (SOX) Compliance Law on Enron 1. What section of the SOX compliance law requires proper controls and hence, security controls, to ensure the confidentiality and integrity of financial information and recordkeeping within an IT infrastructure? Explain the information contained in this section.
SOX Section 404 mandates that all publicly-traded companies must establish internal controls and procedures for financial reporting and must document test and maintain those controls and procedures to ensure their effectiveness. The purpose of SOX is to reduce the possibilities of corporate fraud by increasing the stringency of procedures and requirements for financial reporting.
2. Who is Richard Scrushy and why is he relevant to SOX?
Richard Scrushy first CEO charged with violating the SOX Act. He was owner and founder of HealthSouth Corp
3. Who, under SOX, is legally accountable for certifying and approving the integrity of the company and its financial reporting to the SEC and other financial organizations?
Under the Sarbanes-Oxley Act, the CEO and CFO of publicly traded companies to certify the appropriateness of their financial statements and disclosures and to certify that they fairly present.
4. What is the difference between a form 10-K and a form 10-Q, and who must submit these to the Securities Exchange Commissions (SEC) for publicly traded company financial reporting?
10-K is a company’s annual report that is filed yearly & make public. 10-Q is the company’s quarterly report. Upper management of major companies is to submit these to the Securities Exchange Commissions.
5. What qualifies as a “large accelerated filer,” and how long after the end of the quarter do they have to file their quarterly financial report?
A company that meets conditions of a million dollar amount has been subject to periodic reporting requirements pursuant to Exchange Act Sections for certain amount of time, has
Assess the Impact of Sarbanes-Oxley (SOX) Compliance Law on Enron 1. What section of the SOX compliance law requires proper controls and hence, security controls, to ensure the confidentiality and integrity of financial information and recordkeeping within an IT infrastructure? Explain the information contained in this section.
SOX Section 404 mandates that all publicly-traded companies must establish internal controls and procedures for financial reporting and must document test and maintain those controls and procedures to ensure their effectiveness. The purpose of SOX is to reduce the possibilities of corporate fraud by increasing the stringency of procedures and requirements for financial reporting.
2. Who is Richard Scrushy and why is he relevant to SOX?
Richard Scrushy first CEO charged with violating the SOX Act. He was owner and founder of HealthSouth Corp
3. Who, under SOX, is legally accountable for certifying and approving the integrity of the company and its financial reporting to the SEC and other financial organizations?
Under the Sarbanes-Oxley Act, the CEO and CFO of publicly traded companies to certify the appropriateness of their financial statements and disclosures and to certify that they fairly present.
4. What is the difference between a form 10-K and a form 10-Q, and who must submit these to the Securities Exchange Commissions (SEC) for publicly traded company financial reporting?
10-K is a company’s annual report that is filed yearly & make public. 10-Q is the company’s quarterly report. Upper management of major companies is to submit these to the Securities Exchange Commissions.
5. What qualifies as a “large accelerated filer,” and how long after the end of the quarter do they have to file their quarterly financial report?
A company that meets conditions of a million dollar amount has been subject to periodic reporting requirements pursuant to Exchange Act Sections for certain amount of time, has