|Author :||Jae K. Shim, Ph.D., CPA|
|Course Length :||Pages: 54 ||| Review Questions: 38 ||| Final Exam Questions: 30|
|CPE Credits :||6.0|
|IRS Credits :||0|
|Passing Score :||70%|
|Course Type:||NASBA QAS - Text - Technical - NASBA Registry|
|Primary Subject-Field Of Study:||
Accounting - Accounting for Course Id 1188
A corporate scandal involves alleged or actual unethical behavior by people acting within or on behalf of a corporation. Since the turn of the century, the U.S. has seen some large corporate collapses and scandals due to shoddy and deceptive accounting practices. Many companies, shareholders and employees suffered as stock prices fell and reputations were tarnished when businesses such as Nokia, Lucent Technologies, energy, and internet-related businesses conducted questionable practices.
This course examines developments in finance and accounting and a series of corporate accounting scandals on the heels of the Enron debacle that have led to current sweeping accounting guidelines, proposals, and legislation-most notably, the Sarbanes-Oxley (SOX) Act. Many of the issues surrounding the SOX Act-especially Section 404, Internal Control over Financial Reporting and Sections 302 and 906, Management Certifications -are discussed. The general issues on corporate governance and corporate social responsibility (CSR), including stock option expensing, are also covered. The illegal practice of stock option backdating is described as well.
|Usage Rank :||0|
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Additional Links :||
Corporate Governance and the Sarbanes-Oxley Act (SOX)
|Advance Preparation :||None.|
|Delivery Method :||QAS Self Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||18-Jan-2021|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA QAS - Text - Technical - NASBA Registry - 1188
|Keywords :||Accounting, Sarbanes-Oxley, Act, Corporate, Governance, v10, cpe, cpa, online course|
|Learning Objectives :||
Course Learning ObjectivesAfter studying this course you will be able to:
2. Identify the controversy with expensing stock options and specific issues addressed by ASC 718.
3. Recognize different rules and regulations put out by the FASB, NYSE, and the SEC.
4. Identify key elements of corporate governance.
5. Identify attributes of good governance, social responsibility and other ethical standards.
6. Recognize the major features of the Sarbanes-Oxley (SOX) Act of 2002 Corporate Responsibility Law.
|Course Contents :||
Chapter 1: Points of Controversy
Course Learning Objectives
Types of Accounting Irregularities
Moving Debt off the Balance Sheet
Earnings "Management" and the Use of Pro Forma Results
Overstated Pension Plan Assumptions
Underreporting of Executive Compensation
Inappropriate Earnings Management Practices
Corporate Governance Issue
Characteristics and Trends of Financial Restatements
The Role of the Securities and Exchange Commission
Division of Enforcement
Division of Corporate Finance
Chapter 1 Review Questions
Chapter 2: FASB, New York Stock Exchange and SEC Rules
Accounting for Stock-Based Compensation
Change in Approach to Equity Compensation
Arguments for and Against Stock Options Expensing
Stock Option Expense Approach
The Black-Scholes Model
Lattice-based Option Models
Stock Options Backdating
Alternatives to Stock Options
Restricted Stock Options
Stock Appreciation Rights
New York Stock Exchange and SEC Rules
The New York Stock Exchange’s Corporate Governance Rules
SEC Approved Rules to Address Analyst Conflicts
SEC Tightens Its Deadlines for Disclosure
The CFA Institute Research Objectivity Standards
1.0 Research Objectivity Policy
2.0 Public Appearances
3.0 Reasonable and Adequate Basis
4.0 Investment Banking
5.0 Research Analyst Compensation
6.0 Relationships with Subject Companies
7.0 Personal Investments and Trading
8.0 Timeliness of Research Reports and Recommendations
9.0 Compliance and Enforcement
11.0 Rating System
Chapter 2 Review Questions
Chapter 3: The Sarbanes-Oxley Act
Enhanced Corporate Responsibility Law
The Highlights of the SOX Act
The Role of Public Company Accounting Oversight Board (PCAOB)
Key Requirements for Accounting Firms
Rules for Corporations, Their Officers and Board Members
Analyst Conflicts of Interest
SOX Section 404
The Main Provisions
Internal Control over Financial Reporting
Responsibilities of Management and the Independent Auditor with Respect to Internal Control over Financial Reporting
The Role of Management
The Role of Independent Auditor
Auditing Standard No. 2201
SOX Section 302 and Section 906 Considerations
Section 302 - Corporate Responsibility: Corporate Responsibility for Financial Reports
Section 906 - White-Collar Crime Penalty Enhancement: Corporate Responsibility for Financial Reports
Considerations for Sarbanes-Oxley Act Compliance
Cybersecurity Systems and Risk Reporting Act
Chapter 3 Review Questions
Chapter 4: Corporate Governance and Other Ethical Standards
The Concept of Corporate Governance
Landmarks in Corporate Governance
Financial Literacy Training
SEC Restricts Mutual Funds' Broker Rewards
Mandatory Evaluation of Board Performance
Information Technology and Corporate Governance
Six Technologies That Can Assist with Compliance
Corporate Social Responsibility
Corporate Social Responsibility Best Practices
Increased Concern for Business Ethics
Factors Lead to Unethical Behavior
General Guides to Ethics
Simplified Criteria for Evaluating Ethical Behavior
Codes of Ethical Conduct
IMA’s Standards of Ethical Conduct for Accountants and Financial Professionals
IMA Statement of Ethical Professional Practice
Resolution of Ethical Conflict
Conflict of Interest
Legal Aspects of Social Responsibility
Chapter 4 Review Questions
Chapter 5: The Key Sarbanes-Oxley Sections
Section 3: Commission Rules and Enforcement.
Section 101: Establishment; Board Membership.
Section 102: Registration with the Board
Section 103: Auditing, Quality Control, and Independence Standards and Rules.
Section 104: Inspections of Registered Public Accounting Firms.
Section 105: Investigations and Disciplinary Proceedings; Reporting of Sanctions.
Section 106: Foreign Public Accounting Firms.
Section 107(c): Commission Review of Disciplinary Action Taken By The Board.
Section 107(d): Censure of the Board and Other Sanctions.
Section 108: Accounting Standards.
Section 109(d): Funding; Annual Accounting Support Fee For The Board.
Section 201: Services outside the Scope of Practice of Auditors; Prohibited Activities.
Section 203: Audit Partner Rotation.
Section 204: Auditor Reports to Audit Committees.
Section 206: Conflicts of Interest.
Section 209: Consideration by Appropriate State Regulatory Authorities.
Section 301: Public Company Audit Committees.
Section 303: Improper Influence on Conduct of Audits
Section 305: Officer and Director Bars and Penalties; Equitable Relief.
Section 306: Insider Trades During Pension Fund Black-Out Periods Prohibited.
Section 401: Disclosures in Periodic Reports.
Section 402(a): Prohibition on Personal Loans to Executives.
Section 403: Disclosures of Transactions Involving Management and Principal Stockholders.
Section 407: Disclosure of Audit Committee Financial Expert.
Section 409: Real Time Disclosure.
Section 501: Treatment of Securities Analysts by Registered securities Associations.
Section 602(a): Appearance and Practice before the Commission.
Title VIII: Corporate and Criminal Fraud Accountability Act of 2002.
Title IX: White Collar Crime Penalty Enhancements
Section 1001: Sense of Congress Regarding Corporate Tax Returns
Section 1102: Tampering With a Record or Otherwise Impeding an Official Proceeding
Section 1103: Temporary Freeze Authority
Section 1105: SEC Authority to Prohibit Persons from Serving as Officers or Directors
Chapter 5 Review Questions