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Assessing Internal Control Management and the CEO and CFO must perform an internal control evaluation and prepare a report attesting to the effectiveness of the controls as of the end of the fiscal year Material changes in the internal control system must be reported during the fiscal quarter in which they occurred if they are likely to affect financial reports The report must address the design and effectiveness of the system, and management must demonstrate that it performed actual tests on the controls It is important to note that the effectiveness of the system must be confirmed; a negative assurance or statement that nothing has come to management s attention is not sufficient Although the SEC has not prescribed any one method of evaluating internal control, it does require that a suitable, recognized framework be used For a framework to be suitable, it must be free from bias, be qualitatively and quantitatively consistent, be sufficiently complete, and be relevant The most common and most recommended system is COSO (some advocate for it to become the mandated system) The five criteria used and recommended by COSO to assess reliability are: 1 2 3 4 5 Extent of documentation Awareness of system (communication) Monitoring Design effectiveness Operating effectiveness

the server ends its session with the client by destroying the associated CSharableSession-derived object (in addition, the kernel will destroy the DSession object which represents the session) If the client has any outstanding requests when Close() is called, they are not guaranteed to be completed

1 Basic provisions A Company restrictions Insiders are subject to insider trading rules that limit the sale of stocks by the employee to within six months of the time he or she has been issued the option B Transferability (1) Incentive stock option (ISO) Only the employee may exercise the option during his or her lifetime The employee can transfer only upon death (2) Nonquali ed stock option (NSO) Option is transferable to family members C Retirement (1) Systematic repositioning of the portfolio is a consideration if the stock represents a large percentage of the employee s holdings (2) A method must be devised to raise cash for exercising the options if the employee wants potential future appreciation D Vesting schedule (1) Straight vesting Same percentage of options becomes exercisable each year (eg, 500 options each year)

With the five components of internal control listed along the top and the elements of reliability on the side, the grid shown in Exhibit 22 can be used to assess the reliability of the entire control system Design effectiveness refers to whether a control is able to prevent or detect material inaccuracies in specific financial statement items It involves consideration of the financial reporting objectives that the control is meant to achieve Operating effectiveness refers to whether the control is functioning properly and as intended During the evaluation of operating effectiveness, management gathers evidence regarding how the control was applied, the consistency with which it was applied, and who applied it

For a non-sharable session, if the client dies without calling Close(), the kernel sends a disconnection message to the server to allow it to cleanup sessions associated with that client thread The kernel performs its thread-death cleanup by walking the queue of DSession objects and destroying any associated with the dead client thread If the session is sharable, the death of a single client thread does not close the session the session is effectively process-relative by virtue of being sharable To destroy the session, either the client process must terminate or the session must be closed explicitly on the client-side by a call to Close() on an RSessionBase handle

.

The Enron fiasco forever changed investor and public reliance on selfregulation measures for accounting and financial reporting Not since the stock market crash of 1929 and the Great Depression in the 1930s has so much attention been paid to federal securities laws and financial and reporting methodology for public companies The result has been a staggering shock to the financial and information systems of public companies, as executives and their boards scramble to make sense of, and comply with, the new regulations The Sarbanes-Oxley Act of 2002 (PUBLIC LAW 107 204 JULY 30, 2002 - 116 STAT 745) was enacted after the Enron and WorldCom debacles, in response to the resulting dramatic loss of faith in the governance of public companies As a remedial measure, this Act significantly affects the day-to-day functions of all top-level management and executives of public companies, particularly the CEO, the CFO, and top information officers The Act created a five-member Public Company Accounting Oversight Board (PCAOB), which has the authority to set and enforce auditing, attestation, quality control, and ethics (including independence) standards for public companies The Act gives the PCAOB the right to impose disciplinary and remedial sanctions for violations of the board s rules, securities laws, and professional auditing standards The Securities and Exchange Commission (SEC) has adopted many of the Sarbanes-Oxley provisions, and the breadth and depth of these changes ensure that CEOs, CFOs, and CIOs must pay close attention to the systems the corporation has set for reporting and auditing of all financial information and securities transactions The main goal of the Sarbanes-Oxley Act is to protect investors and increase their confidence in public companies Specific measures of the Act require that a company s CEO and CFO each certify quarterly and annually that:

If a server dies, the kernel will complete any waiting client requests with the error code KErrServerTerminated This gives the client an opportunity to handle request failure and cleanup, destroying any RSessionBase objects open on the server Even if the server is restarted, previous client sessions cannot be reused without rst being reconnected to it, so the only valid operation is to call Close()