How has the need for SOX compliance impacted ERP systems?
What will be an ideal response?
The Sarbanes-Oxley Act of 2002 has had a huge impact on business today. In particular, sections 404 and 409 related to IT controls. Section 404 impacts how internal controls are set up and states that IT systems have to have adequate internal controls and procedures for financial reporting. Section 409 states that there must be real-time access to operational and financial corporate data. Both of these must be kept in mind when implementing an ERP system. The ERP system must be set up to support SOX compliance in terms of internal controls, timely access to data, and financial reporting.
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A lender may lawfully consider ___________ when determining the applicant's creditworthiness.
a. a mortgage applicant's age b. the religious preference of the mortgage applicant c. whether the mortgage applicant intends to bear children d. whether an applicant's income is derived from alimony
Which of the following questions is more likely to be asked by the firm's managers as opposed to the firm's financial lenders or potential investors?
A) How should we finance firm improvements and investments? B) Should we continue to lend money to this firm? C) Should we buy equity in this firm? D) What are the accounts receivable policies for the firm?