At the time Cynthia Cooper discovered the accounting fraud, WorldCom did not have a whistleblower hotline process in place. Instead, Cynthia took on significant risks when she stepped over Scott Sullivan’s head and notified the audit committee chairman of her findings. Conduct an Internet search to locate a copy of the Sarbanes?Oxley Act of 2002. Summarize the requirements of Section 301.4 of
the Act.
What will be an ideal response?
Section 301.4 of the Sarbanes-Oxley Act of 2002 requires the audit committee of a public company to
establish procedures for the receipt, retention, and treatment of complaints received by the company
regarding accounting, internal controls, or auditing matters. The audit committee is required to
establish procedures for those complaints to be treated confidentially, and for the submission process to
be anonymous for employees submitting the complaints about accounting or auditing matters. These
procedures are often referred to as “whistleblowing” procedures.
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Treasury notes with a maturity of six months or less that are issued by the Federal Government are cash equivalents
a. True b. False Indicate whether the statement is true or false
______ anxiety is fear of preparing a speech, and ______ anxiety is fear of presenting a speech.
Fill in the blank(s) with the appropriate word(s).
Shankar purchased a new car from Friendly Fred's Autos. Fred indorsed the check to Maya for value. Maya presented the check to the bank, and the bank cashed the check. Later, Shankar attempted to place a stop-payment order on the check, because the car he purchased from Fred was defective. Under these circumstances, ________.
A. the bank is liable to Shankar for paying the amount of the check to Maya B. Shankar would not be able to have his account recredited C. Shankar can prove that he has sustained a loss D. Maya must return the funds to the bank
Overhead is applied to jobs in a job-order costing system
a. at the end of a period. b. as jobs are completed. c. at the end of a period or as jobs are completed, whichever is earlier. d. at the end of a period or as jobs are completed, whichever is later.