The Sarbanes-Oxley Act of 2002 (SOX) contains provisions to regulate auditor independence. Which section of SOX contains activities prohibited by auditors? List 8 prohibited activities as defined in this section of SOX. Pick 3 of the prohibited activities and briefly discuss the importance and/or value of the 3 prohibited activities. Please limit your discussion to 2-4 substantive sentences for each of the 3 prohibited activities.
Operating in the Global business environment can be risky and challenging. Based on the assigned readings, briefly discuss three risks and/or challenges that businesses face in operating in the Global business environment. Your discussion must consist of 3-4 substantive sentences per each risk and/or challenge.
1. Title I-Public Company Accounting Oversight Board (PCAOB)-Auditor Section
Appoints the Public Company Accounting Oversight Board for the independent overseeing of public accounting firms/auditors. The board is also responsible for registering auditors, inspecting, and ensuring auditor compliance while imposing sanctions for those who do not comply.
2. Title II-Auditor Independence )-Auditor Section
Prevents dual relationships between auditors and clients in order to reduce conflicts of interest (i.e. consulting). Is also responsible for approving new auditors and overseeing audit partner rotation, and auditor reporting requirements.
Opinion: Dual relationships tend to involve subjectivity and dishonesty. This step is very important at getting auditors to be as objective as possible and to perform their duties in the most honest manner possible.
3. Title III-Corporate Responsibility
Places the burden on senior executives to take individual responsibility for the accuracy and completeness of corporate financial reports (i.e. the company's principal officers must certify and approve the integrity of their company financial reports ...
This solution discusses the importance of Sarbanes Oxley Act to the auditing process.