The Sarbanes-Oxley (SOX) Act of 2002

The Sarbanes-Oxley (SOX) Act of 2002 was enacted to strengthen corporate governance. The audit committee was one of the essential requirements of the Act. Complete the following for this assignment:

  • Explain the responsibilities of the audit committee and its effect in preventing fraudulent financial reporting.
    • Financial accuracy
    • Risk management
    • Control assessment
    • External auditor oversight
    • Efficient use of internal audit
  • Explain how internal auditing contributes to the effectiveness of the purpose and goals of the Sarbanes-Oxley Act.

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