1. What types of companies must follow all Sarbanes-Oxley Act provisions?
A. Public
B. Private
C. Nonprofit
D. Governmental
E. None of these is correct.
2. A dividend is a shareholder’s earnings in a company.
A. True
B. False
3. What is the main goal of the Sarbanes-Oxley Act?
4. How many days after a major event must a company file Form 8-K?
A. Two
B. Three
C. Four
D. Five
E. None of these is correct.
5. Which corporate scandals led to the creation of the Sarbanes-Oxley Act?
A. Enron
B. WorldCom
C. Adelphia
D. Tyco
E. All of these are correct.
6. What are internal controls over financial reporting (ICFR)?
7. How many members of the Public Company Accounting Oversight Board may be certified public accountants?
A. Five
B. Four
C. Three
D. Two
E. None of these is correct.
8. Sarbanes-Oxley Act Section 404 tells organizations the types of controls that they must implement in their IT systems to protect financial reporting.
A. True
B. False
9. Which framework has the U.S. Securities and Exchange Commission official approved as suitable evaluation criteria for internal controls?
A. COBIT
B. COSO
C. GAIT
D. ISO/IEC
E. None of these is correct.
10. Which Sarbanes-Oxley Act provision causes the most concern for information technology professionals?
A. Section 302
B. Section 309
C. Section 404
D. Section 906
E. None of these is correct.
11. A company’s chief information security officer and chief financial officer must sign a Section 302 certification.
A. True
B. False
12. How often must the U.S. Securities and Exchange Commission review a public company’s Form 10-K and Form 10-Q reports?
A. Twice a year
B. Every year
C. Every other year
D. Every 3 years
E. Every 5 years
13. What does an ICFR do?
14. Under the Sarbanes-Oxley Act, how many years must public companies keep audit papers?
A. Five
B. Six
C. Seven
D. Eight
E. None of these is correct.
15. A public company must file a Form 10-K at the end of each quarter.
A. True
B. False