1. @ 2012, Cengage Learning Sarbanes-Oxley, Internal Control, and Cash LO 1 - Understanding the Impact of the Sarbanes-Oxley Act of 2002 on Accounting

2. Sarbanes-Oxley Act of 2002  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. LO 1

3.  Sarbanes-Oxley requires companies to maintain strong and effective internal controls over the recording of transactions and the preparing of financial statements. Sarbanes-Oxley Act of 2002

4. 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. Sarbanes-Oxley Act of 2002

5. LO 1 Sarbanes-Oxley Act of 2002

6. LO 1 Sarbanes-Oxley Act of 2002