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Buy custom How the Sarbanes-Oxley Act will impact the audit function

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Topic: Business
Number of pages / Number of words: 7 / 1844
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Studies conduced by the Treadway Commission in 1987, the Jenkins Committee in 1994, and the Panel on Audit Effectiveness of the Public Oversight Board (POB) in 2000, issued reports recommending changes in audit procedures. The 2000 POB study, considered the most comprehensive study of the profession ever done, recommended the use of forensic techniques in every audit, and suggested the insertion of the element of surprise into audits...


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The study also advised auditors to assume the possibility of dishonesty at various levels of management including, collusion, override of internal control, and falsification of documents. The American Institute of Certified Public Accountants (AICPA) always vowed to enact sweeping changes after each of advisory, however, the AICPA's recommendations always fell short of advising its members to view client financial statements skeptically, and conduct audits accordingly (Frieswick, 2003)...


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