Sarbanes-Oxley MCQ Questions Answers

1. In which year was the Sarbanes Oxley Act created?

2. Time requirement for auditors to save and retain all audit related records?

3. Which U.S. President signed the act into effect?

4. Mitigating factors in documentation?

5. What is meant by '404'?

6. Most commonly used software for SOX flow chart documentation?

7. What is one of the purposes of section 404 of the Sarbanes Oxley act?

8. Management's responsibilities with respect to a 404 audit?

9. Question an auditor may ask himself regarding a client's balance sheet?

10. What is meant by the 'internet bubble'?

11. Purposes of extensive documentation of accounting records and policies?

12. How does an auditor gain confidence about a company's operating effectiveness?

13. What makes for a 'material weakness'?

14. Auditors role in a section 404 audit?

15. What service can an audit firm still provide to a corporate client when engaged as auditors?

16. What is it meant to be accountable?

17. What makes for a 'significant deficiency'?

18. Another name for the Sarbanes Oxley Act?

19. What are 'financial disclosures'?

20. What does the board of directors do for a company?

21. Which would be classified as an 'issuer' under SOX?

22. What is the SEC?

23. What separation would be required between a company and its audit firm?

24. Why is it important to document all of the internal controls of the IT department?

25. Who issues the COBIT standards?

26. What is the often criticized part of the act?

27. What method of documentation is required under SOX?

28. Requirements of section 404 of SOX?

29. What is the penalty awarded to senior management for non compliance with SOX?

30. One of the primary, overall objectives of SOX regulations?

31. Where did the name Sarbanes Oxley come from?

32. What is corporate fraud?

33. Which departments are required to be involved in documentation for SOX?

34. What do COBIT standards indicate?

35. Who is held responsible at the corporate level once SOX has been signed off by the auditors?

36. Which agency was created because of the act?

37. What is the PCAOB?

38. What is a whistleblower?

39. What is the general implementation process for SOX in order?

40. What is COBIT akin to from the Accounting world?

41. What must annual reports contain in order to be compliant with section 404?

42. What is the level of crime when management knowingly signs off on compliance documents it knows to be incorrect and misleading?

43. What is a major criticism of documentation?

44. What was the magnitude of financial losses due to accounting fraud before the act?

45. What method may an auditor use to gain confidence in the company's documentation regarding procedures?

46. What is the annual requirement of a company under SOX?

47. What is one way a company can become non compliant with SOX?

48. How do independent auditors test the claims of management?

49. How are companies able to manage the documentation process effectively?

50. What are the minimum requirements under section 302 of SOX?

51. Why are risk factors listed in documentation?

52. What have some firms looking to avoid the SOX regulations done?

53. On an average how long does it take to document a procedure?

54. What does SOX state regarding personal loans from the company to executives?

55. What is the disclosure requirement for company management regarding any transactions involving their personal holdings in the company?

56. What does an auditor do?

57. What is testing for 'design effectiveness'?

58. What is a primary debatable issue regarding the act and its effect on United States based companies compared to other countries?

59. What purpose does performing walkthroughs serve?

60. What would an auditor look for and test on a financial statement?

61. What must a legal firm which learns of a corporate client's illegal activities do under SOX?

62. What has to be done in the documentation for Section 404?

63. What is meant by 'compliance'?

64. What was the original compliance deadline date for companies?

65. Best method for an auditor to gain an understanding of a company's procedures?

66. What is the documentation requirement for off balance sheet transactions?

67. Main goal of the act regarding the public?

68. What is a SAS 70 report?

69. Which high profile company was one of the cornerstones of the financial fraud problems?

70. Requirement for procedures and listing all risk factors and mitigating factors?

71. What ban has been placed on directors of a company during a pension fund blackout period?

72. How can companies accelerate their documentation process?

73. Best way to ensure that the documentation is complete?

74. What is meant by 'top down' testing?

75. Commonly used acronym for Sarbanes Oxley Act?

76. What is COBIT?

77. What is the first step in implementing Sarbanes Oxley compliance?

78. What is the new maximum prison term for executives who impede an official investigation?

79. Why are whistleblowers protected under law now?

80. What was the main reason behind the act to be drafted?

81. What is the requirement regarding code of ethics for companies under SOX?

82. In order to determine significant accounts, Management must consider the concept of Materiality. Which of the following is a Quantitative consideration of Materiality?

83. Under the Sarbanes-Oxley Act, if a public company makes a “required” accounting restatement due to “misconduct,” what could happen to that company’s CEO and CFO?

84. Identify the sub process of a Receivables Business Process.

85. Which organization created COBIT as a framework for IT Management and Governance?

86. Which of the following is NOT a Form of Certification as per SEC?

87. Which section of the Sarbanes-Oxley Act requires senior management to certify the accuracy of data reported in their company’s financial statement?

88. The Sarbanes-Oxley criminalizes retaliation against whistleblowers that provide “truthful information” to a “law enforcement officer” about the “commission or possible commission of any Federal offense,”. Who does this provision apply to?

89. Which organization is responsible for the Internal Control Framework as required by SOX?

90. Within Sarbanes-Oxley, who is tasked with registering auditors, and defining the specific procedures for compliance audits?

91. The Dodd-Frank financial reform bill permanently exempts small-companies from which key provision of section 404 of the Sarbanes-Oxley act?

92. How many public accountants can there be on the PCAOB Board?

93. Besides the management of a company, who else would be held responsible for non-compliance with the Sarbanes-Oxley's business record keeping provision?

94. How many SOX titles (sections) have been ammended?

95. Which of the following is a Material Weakness leading to Audit Failure?

96. Which of the following companies does NOT have to comply with the all of The Sarbanes Oxley Act's regulatory mandates?

97. The Sarbanes-Oxley Act applies to which non US companies?

98. Which Act was passed to cut back on multiple regulatory requirements and coincided with the tenth anniversary of SOX?

99. Which Sarbanes-Oxley Act section mandates that a corporation’s registered accounting firm must attest to the effectiveness of the internal control structure and procedures for financial reporting?

100. Which of the following tools has been largely adopted as part of Sarbanes Oxley IT Compliance?