Webster University decides to convert from a non-profit educational institution to a for-profit public corporation. It has an initial public offering and begins trading as a public company with a listing on the NASDAQ stock exchange. During an audit of Webster University Inc., processes and controls, the Securities and Exchange Commission fined Webster University Inc., for failing to comply with the Sarbanes-Oxley Act of 2002. The Securities and Exchange Commission cited Maryville University Inc., for failing to implement three major Sarbanes-Oxley Act of 2002 requirements. Without knowing any additional facts, identify three potential elements of the Sarbanes-Oxley Act of 2002 that Webster University Inc., may have failed to implement.

 

2. As part of Webster University Inc. going public it decided that it wanted to expand to several lucrative overseas markets. One of those markets is the nation of Hungary, a member of the European Union but which is known for high levels of official corruption. In order to start its expansion, Webster University Inc. sent out several employees to scout out areas of Hungary that may be ripe for expansion. The scouting team completed a lengthy report wherein it recommended Webster University Inc. set up an initial business entity for the purpose of providing upfront payments to local politicians so that the local politicians will support the project. Such upfront payments to politicians are considered an illegal bribe if they occurred in the United States but are allowed under Hungarian law. Explain whether Webster University Inc. legally makes these up-front payments to Hungarian politicians?

Answer rating: 100% (QA)

Potential SarbanesOxley Act of 2002 elements Webster University Inc may have failed to implement a Internal Controls Webster University Inc may have f... View the full answer