How has the Sarbanes-Oxley Act of 2002 changed the need for the internal audit function?© BrainMass Inc. brainmass.com September 21, 2018, 12:23 pm ad1c9bdddf - https://brainmass.com/business/business-law/internal-audit-function-349658
How has the Sarbanes-Oxley Act of 2002 changed the need for the internal audit function?
The Sarbanes-Oxley Act of 2002 also called the Public Company Accounting Reform and Investor Protection Act was brought about because of the corporate and accounting scandals during the 1990's (The free dictionary by Farlex). In the 1990's the corporate and accounting companies worked together in order to increase revenues and profit for these large corporate companies without regards to laws, rules or regulations. This lack of responsibilities brought on bankruptcies, severe stock losses and a loss of confidence in the stock market (The free dictionary by Farlex). The act established new responsibilities on public corporate management and criminal fines on those corporate managers that do not obey the law.
The act allows for the Securities and Exchange Commission (SEC) to establish authority over any director or officer who has violated laws that involve issuing of stock, new disclosure ...
The Sarbanes-Oxley Act of 2002 changed is examined.