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Sarbanes-Oxley And Fraud Essay

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Sarbanes-Oxley And Fraud Essay
The Effect of Sarbanes-Oxley (SOX) and the Public Companies Accounting Oversight Board (PCAOB) on Auditing Practice
In business, there should have various rules and regulation governing in order to avoid mismanagement and frauds associated. In the United States, several bodies have been put in place to oversee, create registration, reporting and, providing transparency. Such bodies include, the Sarbanes-Oxley (SOX) which eventually resulted in the creation of the Public Company Accounting Oversight Board (PCAOB). These boards are responsible for monitoring as well as reviewing public accounting companies. Therefore, Sarbanes-Oxley has brought various effects in the auditing practice in the United States.
To beg with is the auditing committee requirement. They are …show more content…
This helps to improve frauds within the firms.
With regard to our values, business is considered to be structured in such a way that those in top as considered to be more knowledgeable have more skill and having the mandate to operating the business. Therefore, the auditing team is mandated to overseeing all duties of the enterprise. The aspects help to maintain unity in the firm (Myers 2003)
According to our Christan value, we believe that integrity and trust are crucial guidelines for achieving good moral values within the firm. Therefore, the auditing group should have maximum discipline, trust and faith among themselves as well as with employees. This will ensure the prevention of frauds within the firms (Myers 2003).
In conclusion (SOX) and (PCAOB) together with Christianity believe have ensured that the auditing practice is conducted in a more professional manner. Hence the success of many organizations and the firms that adhere to their rules and
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