Which of the following requirements about internal controls were enacted under the Sarbanes Oxley Act:
Companies must develop sound internal controls over financial reporting.
Explanation: Under SOX, companies are required to create internal controls that prevent fraud that could harm public investors.
Sarbanes Oxley applies to:
U.S companies but not international companies.
Explanation: Sarbanes-Oxley applies to U.S companies that are publicly traded. International companies are affects, so long as they are not headquartered in the United States.
- Student: Barry Tadworth
- Textbook: Multiple Textbooks Combined
- Course: BUS 475 (2017-18)
What is a difference between merchandising companies and service enterprises?
Merchandising companies generally have a longer operating cycle than service enterprises.
Explanation: Merchandising requires multiple operating steps that are not usually found in service companies. For example, (1) buy merchandise from supplier. (2) sell merchandise to customers on credit. (3) collect outstanding balances from customers.
The fraud triangle applies to:
U.S and international companies.
Explanation: The fraud triangle is an HR concept that applies to all businesses worldwide related to an employee’s decision to commit fraud.
Continuous monitoring, in the contemporary approach, is beneficial because _____________.
organization response time is increased
Explanation: Continuous monitoring enables companies to quickly detect and flag areas of concern. This makes response time and conflict management happen far more rapidly.
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