Sarbanes-Oxley, Internal Control, and Cash

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Sarbanes-Oxley, Internal Control, and Cash
LO 1 - Understanding the Impact of the
Sarbanes-Oxley Act of 2002 on Accounting
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Sarbanes-Oxley Act of 2002
LO 1

• The Sarbanes-Oxley Act of 2002 (often referred to
  simply as Sarbanes-Oxley) applies only to
  companies whose stock is traded on public
  exchanges. Its purpose is to restore public
  confidence and trust in the financial statements
  of companies.

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LO 1
Sarbanes-Oxley Act of 2002

• Sarbanes-Oxley requires companies to maintain
  strong and effective internal controls over the
  recording of transactions and the preparing of
  financial statements.

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Sarbanes-Oxley Act of 2002
LO 1

• Internal control is broadly defined as the
  procedures and processes used by a company to
• Safeguard its assets.
• Process information accurately.
• Ensure compliance with laws and regulations.

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Sarbanes-Oxley Act of 2002
LO 1
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LO 1
Sarbanes-Oxley Act of 2002