Buy custom The Future Directions of The Auditing Profession
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Business
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| Number of pages / Number of words: |
9 / 2426 |
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There are continuing attempts to prevent this from constantly occurring and reoccurring with the introduction of various monitoring and control mechanisms in the form of more rigorous standards and legislation.
2.1 SARBANES-OXLEY ACT
The US Government’s response to the recent collapse of various seemingly significant corporations due to accounting scandals, was the enactment of the Sarbanes Oxley Act (2002) (SOX) on 30 June 2002 in an effort to raise and monitor the quality of corporate governance...
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Lavelle (2002, p 50) describes these changes as “the most sweeping structural changes in governance that have ever occurred.â€
Some of the changes included to monitor quality were the requirement of certification by management and disclosure of internal control systems (S302), the provision of certain types of non-audit services being prohibited (S201), and the requirement that all members’s on a firm’s audit committee must be independent, with at least one member being financial expert (S311) (Salmon &Carson, 2008)...
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