The Impact of the Sarbanes-Oxley Act on Auditing

The Impact of the Sarbanes-Oxley crop on Auditing

Introduction
The Sarbanes-Oxley characterization of 2002, also cognise as the Public Company Accounting Reform and Investor tax shelter Act of 2002, has literally changed the landscape of the accounting world. This single flip-flop of legislation has had the biggest impact on accounting profession, including auditing, since the passage of The Securities Act of 1933 and The Securities Exchange Act of 1934. The Sarbanes-Oxley Act of 2002 (herein referred to as SOX, or Sarbanes-Oxley), resulted from gargantuan accounting scandals such as Enron, WorldCom, AIG, and others. The purpose of this act was to rectify public confidence in public accounting and advertise better ethical business practices through increased executive director awareness and accountability.
SOX instituted major changes to the regulation of fiscal practice and bodily governance. Of the key components of SOX, section 404 has gained the most attention and requires public guild auditors to attest to the effectiveness of internal controls and fair presentation of financial statements, in all material respects. The Sarbanes-Oxley Act has greatly impact the auditing landscape; however, how has it specifically impacted the Banking sector?



What are the cultivated and legal issues and consequences for the auditing profession prior to and subsequent the Sarbanes Oxley Act? How has the Sarbanes-Oxley Act impacted accountants, auditors, and stakeholders of financial institutions? What general impact has Sarbanes-Oxley had on the auditing ferment as a whole? This paper will stress to address these questions in an effort to gain a great understanding 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 regulated industry. The Federal cleave Insurance Corporation Improvement Act (FDICIA) of 1991 required square auditing for all financial institutions with more...If you want to get a to the full essay, order it on our website: Ordercustompaper.com



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