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15 Cards in this Set
- Front
- Back
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Ch 19: SOX
Section 302 |
Makes CEO AND CFO sign off
Most powerful legislature since 1933 |
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Ch 19: SOX
Section 906 |
10k and 10Q 20 yrs prison 5 million fine.
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Ch 19: SOX
Subcertification |
Make employees sign off that numbers were correct
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Ch 19: SOX
Role of Financial Professionals |
60% of finance professionals certify numbers
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Ch 19: SOX
Section 404 COmpliance |
Requires that managers state their responsibility for establishing internal controls for reporting. Auditors attest to and report on managements assessment.
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ERISA
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Employee Retirement Income Security Act 1974 federal law established legal guidelines for private pension plan practices.
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5 objectives of ERISA
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adequote info about plan
standard of conduct for managers make sure funds are used corect ensure money is given out safeguard benefits for works that were terminated |
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ERISA Fiduciary Responsibilities
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Section 404:prudence of investment
Manager liable for any breach. Tax sanctions. |
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Prohibited transactions
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cant send money to anyone who maintains, or is boss of workers, or relative of anyone.
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Highly compensated Employees HCEs
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5 % of company or 90k + salary
or top 20% must be 70% of non HCEs in plan |
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ERISA must report to
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DOL
IRS PBGC - pension benefit guaranty corporation. NOT DOLLAR FOR DOLLAR in case of bankruptcy. |
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ERISA
Standard Termination |
60 day notice, pgbc approval
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Distress terminatino ERISA
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PBGC takes over the plan. Pays all benefits up to max amount determined by PBGC. Sponsor is liable to PBGC for all unfunded benefits PBGC paid out.
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Earnings Credit
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EC = CB*(1-RR)*(ECR*D/365)
CB = Avg Collected Balance RR = Reserve ECR = Earnings Credit Rate D = days in month |
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Collected Balance
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CB = SC/( (ECR*D/365)*(1-RR) )
SC = service charge |
