Describe some of the most important aspects of Sarbanes-Oxley Act (SOX) and discuss why SOX was important to accountants
What will be an ideal response?
Answer: Some of the most important aspects of SOX include: (1) The creation of the Public Company Accounting Oversight Board (PCAOB) to control the auditing profession; (2) The added new rules for auditors; (3) The added new roles for audit committees; (3) The added new rules for management, and (4) The added new internal control requirements. SOX applies to publicly held companies and their auditors and was designed to prevent financial statement fraud, make financial reports more transparent, protect investors, strengthen internal controls, and punish executives who perpetrate fraud. SOX was important to accountants because it is the most important business-oriented legislation in the last 80 years. It changed the way boards of directors and management operate and had a dramatic impact on CPAs who audit them.
You might also like to view...
Oneway performance management systems can support organizational goals is by
A. defining and measuring performance in broad behavioral terms. B. linking performance measures to meeting internal and external customers' needs. C. ignoring situational constraints. D. outsourcing those goals to professional behavior management firms. E. choosing business goals based on employees' skills and abilities.
Which of the following is least likely to occur during a "hard" insurance market period?
A) difficulty in obtaining insurance B) tightening underwriting standards C) higher insurer profits D) increasing premiums