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NEW QUESTION: 1
A. Option D
B. Option C
C. Option B
D. Option A
E. Option E
Answer: E
NEW QUESTION: 2
A. Option D
B. Option C
C. Option B
D. Option A
Answer: C
NEW QUESTION: 3
According to the Section-302 of the Sarbanes-Oxley Act of 2002, what does certification of reports implies?
Each correct answer represents a complete solution. Choose three.
A. The financial statement does not contain any materially untrue or misleading information.
B. The signing officer has evaluated the effectiveness of the issuer's internal controls as of a date at the time to report.
C. The signing officer has reviewed the report.
D. The signing officer has presented in the report their conclusions about the effectiveness of their internal controls based on their evaluation as of that date.
Answer: A,C,D
Explanation:
Explanation/Reference:
Explanation:
Section 302 of Sarbanes-Oxley act has the tremendous impact on the risk management solution adopted by corporations. This section specifies that the reports must be certified by the CEO, CFO, or other senior officer performing similar functions.
Certification of reports establishes:
The signing officer has reviewed the report.
The financial statement do not contain, to the knowledge of signing officer, any materially untrue or
misleading information and represent fairly all financial conditions and results of the enterprise's operations.
The signing officers:
- are responsible for establishing and maintaining internal controls
- have designed such internal controls to ensure that material information relating to the issuer and its consolidated subsidiaries is made - known to such officers by others within those entities, particularly during the period in which the periodic reports are being prepared
- have evaluated the effectiveness of the issuer's internal controls as of a date within 90 days prior to the report
- have presented in the report their conclusions about the effectiveness of their internal controls base on their evaluation as of that date The signing officer have disclosed to external auditors, audit committee, and other directors:
- all significant deficiencies in the design or operation of internal controls which could adversely affect the reliability of the reported financial data
- any fraud, whether or not material, that involves management or other employees who have a significant role in the internal controls of the enterprise The signing officer have indicated in the report any internal controls or changes to those internal
controls which have been implemented since they were evaluated.
Incorrect Answers:
A: The signing officer has evaluated the effectiveness of the issuer's internal controls as of a date within 90 days prior to the report, not at the time of the report.
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