Instructions:

• Answer 50 questions in 15 minutes.
• If you are not ready to take this test, you can study here.
• Match each statement with the correct term.
• Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Objectives of Internal Control
The financial safeguards imposed by SOX include numerous reporting requirements - but there are no reporting requirements associated solely with its whistleblower provisions - The National securities exchanges and commissions may require public compa
Assets are Safeguarded and used for business purposes - Business information is Accurate - Employees comply with Laws and Regulations
quorum
straight voting


2. A report provided to shareholders that contains a balance sheet - an income statement - and a statement of changes in shareholder equity
The employer has 20 days to respond to an employee's complaint to OSHA - The employer has 30 days to object to the administrative law judge's findings and request a hearing - The employer has 60 days to appeal the board's decision to the U.S. Court o
violation of a director's or officer's duty of loyalty. if proven - corporation can (1) acquire opportunity from director/officer and (2) recover any profits made by the director/officer
annual report
negligence


3. An arrangement in which the shareholders transfer their stock certificates to a trustee who is empowered to vote the shares
voting trust
buy-and-sell agreement
If they provide information to be provided to - or assists in an investigation conducted by: A federal regulatory or law enforcement agency (such as the SEC) - A member of committee of Congress - A person who either has supervisory authority over the
opportunity was presented to the director/officer in his or her corporate capacity - opportunity is related to or connected with teh corporation's current or propsed business - corporation has the financial ability to take advantage of the opportunit


4. A doctrine that says if a shareholder dominates a corporation and uses it for improper purposes - a court of equity can disregard the corporate entity and hold the shareholder personally liable for the corporation's debts and obligations - also calle
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piercing the corporate veil
They can have their stocks delisted by the national securities exchange and associations
Analysis of the items and amounts that cause the cash balance reported in the bank statement to differ from the balance of the cash account in the ledger in order to determine the adjusted cash balance.


5. Remittance Advice
Any company that has a class of securities registered with the Securities and Exchange Commission (SEC) under 15 U.S.C.
Cash Register
Anyone who intentionally harms someone else for providing truthful information to a law enforcement officer relating to the commission of any federal offense faces up to ten years in prison
A control for cash recevied throught the mail


6. A member of a board of directors who is not an officer of the corporation
Investigations - Legal proceedings
outside director
shareholder voting agreement
fiduciary duties


7. A system in which each shareholder votes the number of share he or she own on candidates for each of the positions open - also called noncumulative voting
shareholder voting agreement
straight voting
violation of a director's or officer's duty of loyalty. if proven - corporation can (1) acquire opportunity from director/officer and (2) recover any profits made by the director/officer
annual shareholders' meeting


8. SOX states that __ - __ - __ - __ and __ all constitute retaliation.
Applies only to companies whose stock is traded on public exchanges. Its purpose is to restore public confidence and trust in the financial statements of companies.
officer
termination - demotion - suspension - threats - harassment
inside director


9. A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation fails to bring the lawsuit
voting trust
Any officer - contractor - subcontractor - agent - or employee of a company
derivative lawsuit
buy-and-sell agreement


10. Sarbanes-Oxley Act of 2002
The SEC regulations do not require companies to follow particular procedures for taking employee complaints (such as setting up an ethics hotline or a Web-based complaint system)
retaliates against a whistleblower
The financial safeguards imposed by SOX include numerous reporting requirements - but there are no reporting requirements associated solely with its whistleblower provisions - The National securities exchanges and commissions may require public compa
Applies only to companies whose stock is traded on public exchanges. Its purpose is to restore public confidence and trust in the financial statements of companies.


11. A written document that a shareholder signs - authorizing another person to vote his or her shares at the shareholders' meetings in the event of the shareholder's absence
Cash balance according to bank statement - Add deposit not recorded by bank (outstanding deposit) - Deduct outstanding checks (+/- Errors) - Adjusted Balance - Cash balance according to company - Add note and interest collected by bank - Deduct servi
If the company or person named can show by clear and convincing evidence that it would have taken the same action against the employee even in the absence of the employees protected activity
Receiving - keeping - and handling complaints the company receives regarding its accounting - auditing - or internal accounting controls Allowing employees to submit confidential - anonymous complaints and concerns about questionable accounting or
proxy


12. What is the stated purpose of SOX?
The employee engaged in protected activity - The person accused of retaliation knew of the activity - The employee suffered an adverse employment action - The circumstances create an inference that the adverse employment action was due to the employe
Managers and supervisors who violate SOX by retaliating against whistle blowers may be held personally liable and have to pay judgment awarded to the employee
To protect investors by improving the accuracy and reliability of corporate disclosures - and much of the law seeks to further this goal by imposing strict rules for audits and auditors of publicly traded companies - preventing insider trading and de
proxy


13. A date specified in corporate bylaws that determines whether a shareholder may vote at a shareholders' meeting
An employee who wishes to bring a lawsuit claiming that he or she was discriminated or retaliated against in violation of SOX's whistleblower protections must first file a complaint with the Occupational Safety and Health Administration (OSHA) within
voting trust
record date
Employees who complain of violations of state law - or those who complain of violations of internal company policies or procedures (unless the violation could also mislead shareholders)


14. What new employee right was created by SOX?
Creates employee whistleblower protections: Employees who complain of - or provide information about - actions they believe to be shareholder fraud are protected from discrimination and retaliation. The law also obligates covered companies to create
A control for cash recevied throught the mail
duty of loyalty
termination - demotion - suspension - threats - harassment


15. The criminal provision of SOX
administrative law judge - decision - order
petition - Administrative Review Board - 10
Anyone who intentionally harms someone else for providing truthful information to a law enforcement officer relating to the commission of any federal offense faces up to ten years in prison
cumulative voting


16. Employees of a corporation who are appointed by the board of directors to manage the day-to-day operations of the corporation
officer
Investigations - Legal proceedings
annual shareholders' meeting
The employee must also serve this notice on the other parties to the dispute (the employer and any other companies or individuals whom the employee accuses of retaliation)


17. Meetings of a shareholders that may be called to consider and vote on important or emergency issues - such as a proposed merger or amending the articles of incorporation

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18. A member of the board of directors who is also an officer of the corporation
duty of care
board of directors
inside director
Anyone who intentionally harms someone else for providing truthful information to a law enforcement officer relating to the commission of any federal offense faces up to ten years in prison


19. Audit committee

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20. Additional shares of stock distributed as a dividend
Managers and supervisors who violate SOX by retaliating against whistle blowers may be held personally liable and have to pay judgment awarded to the employee
stock dividend
Creates employee whistleblower protections: Employees who complain of - or provide information about - actions they believe to be shareholder fraud are protected from discrimination and retaliation. The law also obligates covered companies to create
interference with employment or livelihood of the informant


21. What employees are protected under SOX?
all employees who work for public companies as long as they qualify as a whistleblower
public companies
straight voting
Managers and supervisors who violate SOX by retaliating against whistle blowers may be held personally liable and have to pay judgment awarded to the employee


22. Internal Complaint Procedures
special shareholders' meetings
The financial safeguards imposed by SOX include numerous reporting requirements - but there are no reporting requirements associated solely with its whistleblower provisions - The National securities exchanges and commissions may require public compa
Control environment - Risk assessment - Control procedures - Monitoring - Information and communication
The requirement that public companies create procedures for anonymous employee complaints is enforced by the SEC. The SEC has issued rules requiring the national securities exchanges and associations to delist the stock of companies that fail to comp


23. If OSHA does not issue a final decision on the employee's complaint within 180 days after the complaint is filed - the employee can do what?
Control environment - Risk assessment - Control procedures - Monitoring - Information and communication
The employee can file a lawsuit in federal district court
Any officer - contractor - subcontractor - agent - or employee of a company
administrative law judge - decision - order


24. The required number of share that must be represented in person or by proxy to hold a shareholders' meeting - the RMBCA establishes a majority of outstanding share as this term
The employer has 20 days to respond to an employee's complaint to OSHA - The employer has 30 days to object to the administrative law judge's findings and request a hearing - The employer has 60 days to appeal the board's decision to the U.S. Court o
In the wake of corporate scandals involving WorldCom - Enron - and other large companies accused of defrauding shareholders
quorum
right of first refusal


25. SOX (or SARBOX)
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Sarbanes-Oxley
preemptive rights
The employee engaged in protected activity - The person accused of retaliation knew of the activity - The employee suffered an adverse employment action - The circumstances create an inference that the adverse employment action was due to the employe


26. To be protected by sox an employee must do one of what activities?
violation of a director's or officer's duty of loyalty. if proven - corporation can (1) acquire opportunity from director/officer and (2) recover any profits made by the director/officer
opportunity was presented to the director/officer in his or her corporate capacity - opportunity is related to or connected with teh corporation's current or propsed business - corporation has the financial ability to take advantage of the opportunit
Make a complaint to specific groups or people about certain types of misconduct - Participate in certain types of proceedings relating to shareholding misconduct
dividend


27. Usurping of corporate opportunity

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28. SOX creates __ for company representatives.
The employee engaged in protected activity - The person accused of retaliation knew of the activity - The employee suffered an adverse employment action - The circumstances create an inference that the adverse employment action was due to the employe
outside director
personal liability
voting trust


29. If a hearing is requested - it will be held before an __ who will issue a __ and __.
duty of care
administrative law judge - decision - order
The employee can file a lawsuit in federal district court
dividend


30. If a public company fails to adopt the complaint procedures mandated by SOX what may happen?
They can have their stocks delisted by the national securities exchange and associations
public companies
Employees who complain of violations of state law - or those who complain of violations of internal company policies or procedures (unless the violation could also mislead shareholders)
If they provide information to be provided to - or assists in an investigation conducted by: A federal regulatory or law enforcement agency (such as the SEC) - A member of committee of Congress - A person who either has supervisory authority over the


31. SOX generally only applies to __ - however - it's whistleblower provision also applies to company representatives.
public companies
Applies only to companies whose stock is traded on public exchanges. Its purpose is to restore public confidence and trust in the financial statements of companies.
The employee only needed to show that he or she had a reasonable belief that the conduct constituted fraud
Receiving - keeping - and handling complaints the company receives regarding its accounting - auditing - or internal accounting controls Allowing employees to submit confidential - anonymous complaints and concerns about questionable accounting or


32. Voucher
Sarbanes-Oxley Act
Set of procedures for authorizing and recording liabilities and cash payments. It may be either manual or computerized.
The financial safeguards imposed by SOX include numerous reporting requirements - but there are no reporting requirements associated solely with its whistleblower provisions - The National securities exchanges and commissions may require public compa
Any document that serves as proof of authority to pay cash or issue an electronic funds transfer.


33. The employee must file a notice with the administrative law judge assigned to the original complaint __ days before filing the lawsuit.
The SEC regulations do not require companies to follow particular procedures for taking employee complaints (such as setting up an ethics hotline or a Web-based complaint system)
voting trust
15
The person or company must present it's evidence within 20 days after it receives the complaint


34. Public company
They can have their stocks delisted by the national securities exchange and associations
The person or company must present it's evidence within 20 days after it receives the complaint
Any company that has a class of securities registered with the Securities and Exchange Commission (SEC) under 15 U.S.C.
An employee who wishes to bring a lawsuit claiming that he or she was discriminated or retaliated against in violation of SOX's whistleblower protections must first file a complaint with the Occupational Safety and Health Administration (OSHA) within


35. The SEC regulations to not require companies to follow what?
The SEC regulations do not require companies to follow particular procedures for taking employee complaints (such as setting up an ethics hotline or a Web-based complaint system)
Creates employee whistleblower protections: Employees who complain of - or provide information about - actions they believe to be shareholder fraud are protected from discrimination and retaliation. The law also obligates covered companies to create
all employees who work for public companies as long as they qualify as a whistleblower
Cash balance according to bank statement - Add deposit not recorded by bank (outstanding deposit) - Deduct outstanding checks (+/- Errors) - Adjusted Balance - Cash balance according to company - Add note and interest collected by bank - Deduct servi


36. A system in which a shareholder can accumulate all of his or her votes and vote them all for one candidate or split them among several candidates
annual shareholders' meeting
board of directors
outside director
cumulative voting


37. Example of whistle blowing activities that DOL has found to be covered under SOX.
quorum
Anyone who intentionally harms someone else for providing truthful information to a law enforcement officer relating to the commission of any federal offense faces up to ten years in prison
duty of loyalty
Providing information about conduct he or she reasonably believes violates the federal laws - SEC regulations - or federal laws against shareholder fraud


38. Sox important Organizations that you must know
Employees who complain of violations of state law - or those who complain of violations of internal company policies or procedures (unless the violation could also mislead shareholders)
dividend
record date
SEC - PCAOB - FASB - IASB - AICPA - CPA - IFRS - GAAP - GAO - CRARA - PSLRA - FINRA - FCPA - OSHA - ERISA - FSG


39. The employee is required to do what relative to protected whistleblowers?

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40. What about an employee whose complaint is based on a feeling or hunch - in the absence of any evidence?
They are not protected
The employee can file a lawsuit in federal district court
In the wake of corporate scandals involving WorldCom - Enron - and other large companies accused of defrauding shareholders
officer


41. Elements of Internal Control
Sarbanes-Oxley Act
special shareholders' meetings
Control environment - Risk assessment - Control procedures - Monitoring - Information and communication
If they provide information to be provided to - or assists in an investigation conducted by: A federal regulatory or law enforcement agency (such as the SEC) - A member of committee of Congress - A person who either has supervisory authority over the


42. An agreement that requires a selling shareholder to offer his or her shares for sale to the other parties to the agreement before selling them to anyone else
The SEC regulations do not require companies to follow particular procedures for taking employee complaints (such as setting up an ethics hotline or a Web-based complaint system)
all employees who work for public companies as long as they qualify as a whistleblower
right of first refusal
record date


43. Rights that give existing shareholders the option of subscribing to new share being issued in proportion to their current ownership interests
voting trust
preemptive rights
termination - demotion - suspension - threats - harassment
special shareholders' meetings


44. An agreement between two or more shareholders that stipulates how they will vote their shares
shareholder voting agreement
If the company or person named can show by clear and convincing evidence that it would have taken the same action against the employee even in the absence of the employees protected activity
Applies only to companies whose stock is traded on public exchanges. Its purpose is to restore public confidence and trust in the financial statements of companies.
administrative law judge - decision - order


45. Special-purpose cash funds
An employee who wishes to bring a lawsuit claiming that he or she was discriminated or retaliated against in violation of SOX's whistleblower protections must first file a complaint with the Occupational Safety and Health Administration (OSHA) within
Petty Cash Fund or travel funds are used by businesses to meet specific needs. Cashing a check for the amount of cash needed
administrative law judge - decision - order
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46. Either party may request a review of the judge's decision by filing a __ with the __ within __ days after the date on the judge's order
petition - Administrative Review Board - 10
cumulative voting
negligence
opportunity was presented to the director/officer in his or her corporate capacity - opportunity is related to or connected with teh corporation's current or propsed business - corporation has the financial ability to take advantage of the opportunit


47. A meeting of the shareholders of a corporation that must be held by the corporation to elect directors and to vote on other matters

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48. 4 elements that must be proven to show usurping of corporate opportunity:

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49. Even if the employee provides evidence of individual complaints - OSHA will not investigate under what condition?
The employee can file a lawsuit in federal district court
Reinstate the worker to the same position - with the same benefits - responsibilities - and seniority - that the worker would have had absent the retaliation - Pay worker all the compensation and benefits lost as a result of the retaliation with inte
If the company or person named can show by clear and convincing evidence that it would have taken the same action against the employee even in the absence of the employees protected activity
Applies only to companies whose stock is traded on public exchanges. Its purpose is to restore public confidence and trust in the financial statements of companies.


50. What is one of the most important controls to protect cash received in over-the-counter sales?
Analysis of the items and amounts that cause the cash balance reported in the bank statement to differ from the balance of the cash account in the ledger in order to determine the adjusted cash balance.
Cash Register
Cash balance according to bank statement - Add deposit not recorded by bank (outstanding deposit) - Deduct outstanding checks (+/- Errors) - Adjusted Balance - Cash balance according to company - Add note and interest collected by bank - Deduct servi
fiduciary duties