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22730 Assurances for Business Systems and Information
      Spring 2008

                      RESEARCH ESSAY

      General Comments

      The main purpose of this assignment is to investigate the reasons for the recent corporate failures and what action was taken by both the Australian and American governments.
      Also, the essay asks you to evaluate the effectiveness of these actions and suggest further actions to be taken to limit future corporate failures.

      The essay is to be written following the general structure consisting of: introduction, body and conclusion.
      The lecturer will further discuss the content and structure of the essay in class during week 2 lecture.
      This is a major assignment and research on this assignment should begin immediately.

      Essay length

      1 hour approximately (one thousand words)

      Completion Time

      The Essay is to be written as part of the Mid Semester Exam

      Marks:   10 marks

      References (suggestions only)

        • Big four accounting websites
        • SOX
        • CFO
        • CPA/CA
        • Ch 3 (textbook)
        • Ch 3 ( Gay and Simnett)

      Question:

The public accounting profession and corporate management have been criticized for the recent corporate failures such as HIH and One.Tel.     In response to these corporate failures the Australian Government enacted the Audit Reform and Corporate Disclosure Act, and the American Government passed the Sarbanes-Oxley Act 2002. Discuss.
What do these reforms mean for both corporate management and the auditor?
Also, based on your research, evaluate whether these reforms have been a success and identify what further action (s) could be taken by the auditor and corporate management to reduce the risk of future corporate failures. [continues]

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