You researched the Enron fraud case and the SOX compliance law’s requirements, you provided references documenting your findings, and you identified other compliance laws that have been drafted as a result of Enron and other industries. In addition, you wrote an executive summary describing the Enron fraud case’s impact and the U.S. government’s reaction to it.
Lab Assessment Questions & Answers
1. What section of the SOX compliance law requires proper controls and, hence, security controls to ensure the confidentiality and integrity of financial information and recordkeeping within an IT infrastructure? Explain the information contained in this section.
2. Who is Richard Scrushy and why is he relevant to SOX?
3. Who, under SOX, is legally accountable for certifying and approving the integrity of the company and its financial reporting to the Securities and Exchange Commission (SEC) and other financial organizations?
4. Where would someone go to find the quarterly and annual reports for a publicly traded company?
5. What are some of the criminal penalties for falsifying documents or covering up information related to financial matters and SOX?
6. What is the link between SOX compliance law and information systems security?
7. What sections within SOX compliance law pertain to needing proper internal controls?
8. Explain how the sections within SOX compliance law require proper security controls as they relate to having internal controls.
9. Why are vice presidents and other executive managers who are privy to financial performance data considered insiders to a publicly traded company as defined by the Securities and Exchange Commission (SEC)?
10. True or false: SOX compliance law now holds CEOs and CFOs of publicly traded companies accountable for their actions as officers in a publicly traded company.
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