1.

TheAuditCommitteeisinCompliance withSOXbecauseoftworeasonsasgivenand
impliedfromthecase,asfollows:
thetwomemberseachhavelessthan10%ofthecorporationsstock.
the firstmember whois the retired CFO ofaglobal bank has extensive experience in
financialmanagement.
6.TheactionsoftheaccountantinthiscasedoesnotcomplywithSOXbecausethereisgross
violationofdocumentretentionrequirementoftheSOXcompliance.Thedraftversionofthe
calculationsshouldnotbedeletedfromthecompanyserver.Evenifthehistoricalcostversion
doesnotcomeinthefinalcalculations,thearchivedversionshouldbestoredoffsiteinasecure
locationlocatedawayfromthecompanyspremisesinordertoavoidconfusion.Theperiodof
retentionvarieswiththenatureofthedocument.

8.
A. Inthiscase,theloanof$100,000isregardedasacompanyprovidedloantoitsCOO.Hence
itisnotpermittedunderSOX.
B. Inthiscase,thecompanywillcoordinatewithlocalbanktoarrangehomerelocationloan.
HenceitisnotpermittedunderSOX.
C. Sincetheyarebusinessexpenses,theyareallowedonthecompanyscreditcard.Hencethis
ispermittedunderSOX.
12.