Sarbox Background
What year was Sarbox founded?
2005
Material weakness
A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.
What is the correct accounting standard for the case instead of AU 5
PCAOB 2201
What materiality threshold did you determine, explain
If it's a good answer
The eighth planet from the sun?
Neptune
What Item does Sarbox Sell?
Pocket bikes/scooters
Significant deficiency
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Which standard reference for issuers
PCAOB
What accounts did you choose that were below your threshold that are significant?
open ended
What year was ISU established?
1901
What percentage of annual sales comes from dealerships?
90%
What does PCAOB stand for
Public Company Accounting Oversight Board
What AICPA reference refers to PCAOB 2201?
940 (open to other but must explain)
What qualitative reason should make an account significant? (List 3)
Possible loss because of fraud or errors
Volume of activity, complexity, and homogeneity of individual transactions
Account nature
Account’s reporting and accounting complexities
Exposures to loses
Likelihood of the significant contingent liabilities that might arise from activities
Related party transactions
From prior period, changes in account characteristics.
How many slides did this presentation contain?
36
What percentage of their net income is generated in Europe?
40%
What is a GP
Grand Prix
What is the title for PCAOB 2201?
An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements
What outcome did you determine for scenario A?
Open ended
What chapter in the book what this case in?
5
What location recently had management turn over?
Mexico
What is a pocket rocket
A mini motorcycle that ranges from 40 to 50 cubic cm and has a two-stroke engine.
What paragraph in PCAOB 2201 list qualitative reasons for significant accounts?
29
Free Points
Thank you for your participation
To mark an historic visit, on May 17 an Irish army band played this song followed by Ireland's anthem?
God Save The Queen