acct 740 assignment 2

acct 740 assignment 2 - 1. Describe the provisions of SOA...

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1. Describe the provisions of SOA of 2002 intended to enhance auditor independence. The Sarbanes-Oxley legislation attempts to create a more independent environment for auditors to make their contribution to the corporate reporting supply chain. In many ways, the provisions of the Act pertaining to auditor independence reassert the primacy of investor interests, reminding all parties of their responsibilities to protect and safeguard the interests of investors. Sarbanes-Oxley contains significant provisions for SEC issuers designed to strengthen both the (act and the perception of auditor independence. These include: Direct reporting responsibility between the independent auditor and the audit committee, not management, of the company under audit Pre-approval by the audit committee of all services provided by the independent auditor Limits on the type of non-audit services that accounting firms may provide to companies under audit More clearly defined disclosures of the fees paid to auditors for all services Restrictions on the employment of audit engagement team members by companies under audit More frequent rotation of the lead audit partner, concurring review partner and other audit partners 2. Describe the responsibilities of PCAOB The Public Company Accounting Oversight Board (also known as the PCAOB) is a private-sector, nonprofit corporation created by the Sarbanes-Oxley Act of 2002
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This document was uploaded on 04/07/2011.

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acct 740 assignment 2 - 1. Describe the provisions of SOA...

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