IS3350 CHAPTER 7 Flashcards Preview

IS3350 LEGAL ISSUES IN INFORMATION SECURITY > IS3350 CHAPTER 7 > Flashcards

Flashcards in IS3350 CHAPTER 7 Deck (24)
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1
Q

A term used in the Sarbanes-Oxley Act. It refers to processes and procedures that a company uses to make sure that it makes timely disclosures to the UUS Securities and Exchange Commission. This is called ___?

A

DISCLOSURE CONTROLS

2
Q

Represents a shareholders’s portion of the company’s earnings and is called ___?

A

DIVIDEND

3
Q

A report that a public company must file with the US Securities and Exchange Commission. A company must file it within four days of experiencing a major event that affects shareholders and investors and is called ___?

A

FORM 8-K

4
Q

A report that a public company must file with the US Securities and Exchange Commission at the end of its fiscal year. It is a detailed and comprehensive report on the company’s financial condition and is called ___?

A

FORM 10-K

5
Q

A report that a public company must file with the US Securities and Exchange Commission at the end of each fiscal quarter. It is a report on the company’s financial condition at the end of its first three quarters in a fiscal year and is called _?

A

FORM 10-Q

6
Q

A term used in the Sarbanes-Oxley Act. It refers to the processes and procedures that a company uses to provide reasonable assurance that its financial reports are reliable and is called ___?

A

INTERNAL CONTROLS

7
Q

A company held by a small group of private investors is called ___?

A

PRIVATELY HELD COMPANY

8
Q

A company owned by a number of different investors. Investors own a percentage of the company through stock purchases. The stock of a company is traded on a stock exchange and is called a ___>

A

?PUBLIC COMPANY

9
Q

The general term used to describe financial instruments that are traded on a stock exchange. Stocks and bonds are an example. This is called ___?

A

SECURITIES

10
Q
  1. What types of campaniles must follow all Sarbanes-Oxley Act provisions?
  2. Public
  3. Private
  4. Nonprofit
  5. Governmental
  6. None of the above
A

Public

11
Q
  1. A dividend is a shareholder’s earnings in a company.

TRUE OR FALSE

A

TRUE

12
Q
  1. What is the main goal of the Sarbanes-Oxley Act?
A

Protect shareholders and investors from financial fraud.
&
SOX also was designed to restore investor faith in American stock markets.

13
Q
  1. How many days after a major event must a company file Form 8-K?
  2. Two
  3. Three
  4. Four
  5. Five
  6. None of the above
A

Four

14
Q
  1. Which corporate scandals lead to the creation of the Sarbanes-Oxley Act?
  2. Enron
  3. WorldCom
  4. Adelphia
  5. Tyco
  6. All the above
A

Enron
WorldCom
Adelphia
Tyco

All

15
Q
  1. What are internal controls over financial reporting (ICFR)?
A

Internal controls are the processes and procedures that a company uses to provide reasonable assurance that its financial reports are reliable.

16
Q
  1. How many members of the Public Company Accounting Oversight Board may be certified public accountants?
  2. Five
  3. Four
  4. Three
  5. Two
  6. None of the above
A

Two

17
Q
  1. Which standard replaced “Auditing Standard No. 2?”
  2. “Auditing Standard No. 3”
  3. “Auditing Standard No. 4”
  4. “Auditing Standard No. 5”
  5. “Auditing Standard No. 6”
  6. None of the above
A

“Auditing Standard No. 5”

18
Q
  1. Which framework has the US Securities and Exchange Commission official approved as suitable evaluation criteria for internal controls?
  2. COBIT
  3. COSO
  4. GAIT
  5. ISO/EIC
  6. None of the above
A

COSO

19
Q
  1. Which Sarbanes-Oxley Act provision causes the most concern for information technology professionals?
  2. Section 302
  3. Section 309
  4. Section 404
  5. Section 906
  6. None of the above
A

Section 404

20
Q
  1. A company/ chief information security office and chief financial officer must sign a section 302 certification.
    TRUE OR FALSE
A

FALSE

21
Q
  1. How often must the US Securities and Exchange Commission review a public company’s Form 10-K and Form 10-Q
  2. Twice a year
  3. Every year
  4. Every other year
  5. Every three years
  6. Every five years
A

Every three years

22
Q
  1. What does an internal control over financial reporting (ICFR) do?
A

Provides management with reasonable assurance that:

  1. Financial report, records, and data are accurately maintained.
  2. Transactions are prepared according to GAAP rules and are properly recorded.
  3. Unauthorized acquisition or use of data or assets that could affect financial statements will be prevented or detected in a timely manner.
23
Q
  1. Under the Sarbanes-Oxley Act, how many years must public companies keep audit papers?
  2. Five
  3. Six
  4. Seven
  5. Eight
  6. None of the above
A

Seven

24
Q
  1. A public company must file a Form 10-K at the end of each quarter.
    TRUE OR FALSE
A

FALSE