Question

Prior to beginning work on this discussion forum, visit the The Sarbanes-Oxley Act 2002 (Links to an external site.) Search the Internet and locate an annual financial report for a public U.S. company. Read the “Notes” to the Financial Statements to determine the criteria for cash equivalent and how cash and cash equivalents are handled.

In your initial post, you will discuss your findings. Find information about the internal control policy of the company and summarize this policy in your post. Is it in compliance with SOX? What are some references to SOX mentioned in the annual report? Your answer should demonstrate understanding of the Sarbanes-Oxley Act, and be a minimum of 200 to 200 words in length.

Answer 1

The Company considers as cash and cash equivalents all cash on deposit, highly liquid investments with a maturity of 3 months or less at the date of purchase and proceeds due from credit and debit card transactions with settlement terms of up to 1 week. Credit and debit card receivables were $1,243 and $1,383 at the end of 2015 and 2014, respectively.

Our management is responsible for establishing and maintaining required internal control over financial reporting as defined in Rule 13a-15(f) under Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP and includes these policies and procedures such that :

1. Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and the dispositions of our assets.
2. Provide meaningful assurance that our transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that our receipts and expenditure are being made only in accordance with appropriate authorizations.
3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements because of its inherent limitations, internal control over financial reporting may not prevent or detect mis statements.
4. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and representation.

SOX

We have taken a code of ethics for senior financial officers pursuant to section 406 of the Sarbanes-Oxley Act

The Sarbanes Oxley Act was created in 2002 is to protect investors from fraudulent activities by corporations. The Sarbanes Oxley act created rules for providing improved financial disclosures from corporations. SOX was created mainly in response to the scandals in the early 2000’s these scandals included Enron, Tyco, and WorldCom.