Test your basic knowledge |

Sarbanes Oxley Act: SOX Corporate Governance

Subjects : certifications, sarbanes-oxley

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. Even if the employee provides evidence of individual complaints - OSHA will not investigate under what condition?
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
duty of care
piercing the corporate veil
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

2. What are the conditions under which OSHA will investigate individual complaints?
annual report
Cash Register
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
interference with employment or livelihood of the informant

3. Objectives of Internal Control
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.
They can have their stocks delisted by the national securities exchange and associations
Assets are Safeguarded and used for business purposes - Business information is Accurate - Employees comply with Laws and Regulations
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

4. Rights that give existing shareholders the option of subscribing to new share being issued in proportion to their current ownership interests
Help control cash by reduicng the amount of cash on hand and facilitating the transfer of cash between businesses and locations
review
voting trust
preemptive rights

5. Additional shares of stock distributed as a dividend
Assets are Safeguarded and used for business purposes - Business information is Accurate - Employees comply with Laws and Regulations
The employee can file a lawsuit in federal district court
record date
stock dividend

6. Internal Complaint Procedures
annual shareholders' meeting
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
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
buy-and-sell agreement

7. The criminal provision could apply to anyone who ____________ - whether or not the perpetrator works for or has any association with a public company
The employee only needed to show that he or she had a reasonable belief that the conduct constituted fraud
retaliates against a whistleblower
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
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

8. Remittance Advice
right of first refusal
business judgment rule
straight voting
A control for cash recevied throught the mail

9. 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
business judgment rule
quorum
duty of loyalty
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

10. A duty of corporate directors and officers to use care and diligence when acting on behalf of the corporation
shareholder voting agreement
duty of care
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
Investigations - Legal proceedings

11. 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
outside director
petition - Administrative Review Board - 10
business judgment rule
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

12. SOX states that __ - __ - __ - __ and __ all constitute retaliation.
duty of obedience
termination - demotion - suspension - threats - harassment
dividend
Any officer - contractor - subcontractor - agent - or employee of a company

13. SOC record keeping requirements
officer
fiduciary duties
cumulative voting
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

14. Examples of complaints found not to be covered under SOX
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
fiduciary duties
review
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)

15. Example of whistle blowing activities that DOL has found to be covered under SOX.
special shareholders' meetings
Providing information about conduct he or she reasonably believes violates the federal laws - SEC regulations - or federal laws against shareholder fraud
duty of care
shareholder voting agreement

16. A panel of decision makers who are elected by the shareholders
annual report
board of directors
derivative lawsuit
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

17. If a public company fails to adopt the complaint procedures mandated by SOX what may happen?
buy-and-sell agreement
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
They can have their stocks delisted by the national securities exchange and associations
20

18. 'The employee's claim of shareholder fraud does not have to be correct.'
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
all employees who work for public companies as long as they qualify as a whistleblower
annual report

19. SOX generally only applies to __ - however - it's whistleblower provision also applies to company representatives.
A control for cash recevied throught the mail
public companies
quorum
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

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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

21. Bank reconcilation steps
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
Help control cash by reduicng the amount of cash on hand and facilitating the transfer of cash between businesses and locations
all employees who work for public companies as long as they qualify as a whistleblower
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

22. SOX deadlines

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

23. SOX (or SARBOX)
cumulative voting
Sarbanes-Oxley
right of first refusal
proxy

24. Employees of a corporation who are appointed by the board of directors to manage the day-to-day operations of the corporation
stock dividend
officer
There is no avenue for employee complains regarding a public company's failure to adopt an appropriate system for confidential employee complaints. This provision is enforced by the SEC only.
Assets are Safeguarded and used for business purposes - Business information is Accurate - Employees comply with Laws and Regulations

25. Special-purpose cash funds
A committee of members of the board of directors of a public company - formed to oversee the company's audits and accounting and financial reporting processes. Has a number of legal obligations under SOX. If a public company does not establish a sepa
duty of obedience
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

26. The SEC regulations to not require companies to follow what?
public companies
Cash Register
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)
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

27. A distribution of profits of the corporation to shareholders
Providing information about conduct he or she reasonably believes violates the federal laws - SEC regulations - or federal laws against shareholder fraud
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.
dividend
Control environment - Risk assessment - Control procedures - Monitoring - Information and communication

28. What is required to qualify as a protected whistleblower
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
They are not protected
derivative lawsuit
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

29. Bank reconcilation
right of first refusal
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.
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
Control environment - Risk assessment - Control procedures - Monitoring - Information and communication

30. Elements of Internal Control
Control environment - Risk assessment - Control procedures - Monitoring - Information and communication
supramajority voting requirement
Cash Register
Any company that has a class of securities registered with the Securities and Exchange Commission (SEC) under 15 U.S.C.

31. What employees are protected under SOX?
all employees who work for public companies as long as they qualify as a whistleblower
Petty Cash Fund or travel funds are used by businesses to meet specific needs. Cashing a check for the amount of cash needed
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)
buy-and-sell agreement

32. Public company
duty of care
The employee can file a lawsuit in federal district court
Any company that has a class of securities registered with the Securities and Exchange Commission (SEC) under 15 U.S.C.
Sarbanes-Oxley Act

33. A duty that directors and officers have not to act adversely to the interests of the corporation and to subordinate their personal interests to those of the corporation and its 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
E.g. The Management of General Electric Company is responsible for establishing and maintaining adequate internal control over financial reporting for this company With particaipation of the CEO and the CFO.
buy-and-sell agreement
duty of loyalty

34. What provision is enforced by the SEC only?

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183

35. A lawsuit a shareholder brings against an offending party on behalf of a corporation when the corporation fails to bring the lawsuit
buy-and-sell 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
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)
derivative lawsuit

36. A member of a board of directors who is not an officer of the corporation
straight voting
outside director
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
Any company that has a class of securities registered with the Securities and Exchange Commission (SEC) under 15 U.S.C.

37. Establishes establishes far reaching rules regarding coporate governance; CEO and CFO certification; reimbursement of bonuses and incentive pay; prohibition on personal loans; tampering with evidence; bar from acting as an officer/director
Sarbanes-Oxley Act
Any officer - contractor - subcontractor - agent - or employee of a company
fiduciary duties
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

38. The employee must file a notice with the administrative law judge assigned to the original complaint __ days before filing the lawsuit.
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
fiduciary duties
termination - demotion - suspension - threats - harassment
15

39. What is one of the most important controls to protect cash received in over-the-counter sales?
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
special shareholders' meetings
board of directors
Cash Register

40. Bank statement
petition - Administrative Review Board - 10
Any officer - contractor - subcontractor - agent - or employee of a company
annual report
Allows a business to reconcile the cash transactions recorded

41. 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
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)
Assets are Safeguarded and used for business purposes - Business information is Accurate - Employees comply with Laws and Regulations
right of first refusal
petition - Administrative Review Board - 10

42. To be protected by sox an employee must do one of what activities?
Make a complaint to specific groups or people about certain types of misconduct - Participate in certain types of proceedings relating to shareholding misconduct
annual report
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)
Petty Cash Fund or travel funds are used by businesses to meet specific needs. Cashing a check for the amount of cash needed

43. A report provided to shareholders that contains a balance sheet - an income statement - and a statement of changes in shareholder equity
annual report
E.g. The Management of General Electric Company is responsible for establishing and maintaining adequate internal control over financial reporting for this company With particaipation of the CEO and the CFO.
duty of care
proxy

44. An agreement between two or more shareholders that stipulates how they will vote their shares
administrative law judge - decision - order
Investigations - Legal proceedings
shareholder voting agreement
right of first refusal

45. Public companies and company representatives are not permitted to retaliate against an employee in the __ or __ of his/her employment because the employee provided information - participated in an investigation - or participated in a proceeding relat
terms - conditions
shareholder voting agreement
duty of obedience
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

46. Either party may object to these findings and request a hearing within __ days after receiving the finding and order.
30
all employees who work for public companies as long as they qualify as a whistleblower
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
business judgment rule

47. Under what conditions may an employee claim protection of SOX?
Petty Cash Fund or travel funds are used by businesses to meet specific needs. Cashing a check for the amount of cash needed
Help control cash by reduicng the amount of cash on hand and facilitating the transfer of cash between businesses and locations
duty of loyalty
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

48. What is the stated purpose of SOX?
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.
The employee only needed to show that he or she had a reasonable belief that the conduct constituted fraud
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
record date

49. Who signs Report for internal contro?
Any officer - contractor - subcontractor - agent - or employee of a company
officer
E.g. The Management of General Electric Company is responsible for establishing and maintaining adequate internal control over financial reporting for this company With particaipation of the CEO and the CFO.
60

50. What about an employee whose complaint is based on a feeling or hunch - in the absence of any evidence?
administrative law judge - decision - order
Any document that serves as proof of authority to pay cash or issue an electronic funds transfer.
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
They are not protected