IS4680 Lab 1

IS4680 Lab 1

1. 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. Richard Scrushy first CEO charged with violating the SOX Act. He was owner and founder of HealthSouth Corp.
3. 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. 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. 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 previously filed at least one annual report pursuant, and is not eligible to file “Small Business” forms. They have75 days after the end of their quarter they have to file their quarterly financial report.
6. A person would go to a company’s webpage to find quarterly and annual reports for publicly traded company. Each company should have an investor relations section.
7. Microsoft: Assistant Director, Nike: Assistant Director, and Cisco: Assistant Director.
8. Some of the criminal penalties for falsifying documents or cover ups information related to financial matters and SOX are imprisonment. Imprisonment varies on situation.
9. JSOX is the Japanese version of SOX. This is overseen by ULVAC Technologies.
10. Dennis Kozlowski was convicted for crimes related to authorized bonuses, purchase of art, and other high cost money involvement. It’s related to SOX because fraud for public...

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