Principles of Financial Accounting · free preview
Management Responsibilities for Maintaining Internal Controls
Management owns internal control, establishing the control environment, assigning responsibilities, ensuring resources, monitoring performance, and certifying control effectiveness under laws such as the Sarbanes-Oxley Act for public companies.
1. Ownership sits with management
Ownership sits with management
2. Specific responsibilities in daily work
Specific responsibilities in daily work
3. Certifications under Sarbanes-Oxley
Certifications under Sarbanes-Oxley
4. Tone at the top in practice
Tone at the top in practice
5. Who owns internal control
Who bears primary responsibility for establishing and maintaining internal control in an organization?
6. Paper controls
What does it mean to call a control a paper control?
7. Section 404 requirement
What does Section 404 of the Sarbanes-Oxley Act require of public companies?
8. Certifying officers
Which two executives must personally certify internal control effectiveness for a public company's reports?
9. Act year
The Sarbanes-Oxley Act was passed in which year? Give the four-digit year.
10. Certification time window
Executors certify that they have evaluated controls within how many days before the report? Give the number only.
Practice this interactively
Free account · instant grading · spaced review that schedules itself.
Start this course for free