|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
On July 30, 2002 President Bush signed into law the Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform and Investor Protection Act of 2002. ... This act redesigns federal regulation of public company corporate governance and reporting obligations, and imposes a significant impact on executives, accountant, shareholders and regulators, and is the most dramatic change to federal securities laws since the 1930s. ...
The Act creates the Public Company Accounting Oversight Board to oversee the auditing of public companies. ... 6 The Board and its staff may conduct investigations concerning any acts or practices, or omissions to act, by registered public accounting firms and persons associated with such firms, or both, that may violate any provision of the Act, the rules of the Board, the provisions of the securities laws relating to the preparation and issuance of audit reports and the obligations and liabilities of accountants with respect thereto, including the rules of the Commission issued under the Act, or professional standards. ...
Section 201 of the Act prohibits public accounting firms from performing specific services for their audit clients, including internal audit services and financial information systems design and implementation. The Act provides that auditors may engage in tax services or other services not specifically excluded if approved in advance by the Audit Committee. ... The act also requires that certain partners on the audit engagement team rotate after no more than five or seven consecutive years, depending on the partners involvement in the audit, except that certain small accounting firms may be exempt from this requirement. ...
Under the Act, the Audit Committee must be composed solely of independent directors.
Approximate Word count = 1315
Approximate Pages = 5.3
(250 words per page double spaced)
|
|
|
|
|
|