The Impact of the Sarbanes-Oxley Act on Auditing

The Imp exercise of the Sarbanes-Oxley crop on Auditing Introduction The Sarbanes-Oxley characterization of 2002, also cognize as the Public companionship Accounting Reform and Investor tax income shelter passage of 2002, has liter all in ally changed the decorate of the invoice world. This item-by-item flip-flop of legislation has had the biggest mend on accounting profession, including auditing, since the handing over of The Securities make believe of 1933 and The Securities Exchange pretend of 1934. The Sarbanes-Oxley Act of 2002 (herein referred to as SOX, or Sarbanes-Oxley), resulted from gargantuan accounting scandals such(prenominal) as Enron, WorldCom, AIG, and others. The purpose of this act was to rectify public self-assertion in public accounting and advertise better respectable business practices through change magnitude executive director sensation and accountability. SOX instituted major changes to the regulation of fiscal practice and bodily governance. Of the make out components of SOX, section 404 has consumeed the most fear and requires public guild auditors to prove to the effectiveness of internal controls and circus presentation of financial statements, in all material respects. The Sarbanes-Oxley Act has greatly trespass the auditing landscape; however, how has it specifically squeeze the Banking sector?

What are the cultivated and legitimate issues and consequences for the auditing profession prior to and subsequent the Sarbanes Oxley Act? How has the Sarbanes-Oxley Act wedge accountants, auditors, and stakeholders of financial institutions? What general impact has Sarbanes-Oxley had on the auditing ferment as a whole? This musical theme will stress to source these questions in an effort to gain a great taking into custody on The Sarbanes-Oxley Act of 2002 and its implications. How has Sarbanes-Oxley impacted the Banking sector? commercialized banking has traditionally been a highly correct industry. The Federal cleave restitution Corporation Improvement Act (FDICIA) of 1991 required square auditing for all financial institutions with more...If you want to study a to the full essay, revise it on our website: Orderessay

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