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Unformatted text preview: d 1934. The implications of
the Sarbanes-Oxley Act are discussed throughout the text in appropriate
places. While the scandals, public scrutiny, government reforms, and a new
regulated process for establishing auditing standards for public companies
have been painful for accountants and auditors, the events of the last several years have also been a powerful reminder of just how critical the roles of
accounting and auditing are in our society.
We live in a time when the amount of information available for decision
makers via electronic databases, the Internet, and other sources is rapidly
expanding, and there is a great need for the information to be reliable, credible, relevant, and timely. High-quality information is necessary if managers,
investors, creditors, and regulatory agencies are to make informed decisions.
Auditing and assurance services play an important role in ensuring the reliability, credibility, relevance, and timeliness of business information.
The following examples present situations where auditing enters into
economic transactions and increases the reliability and credibility of an entity’s nancial statements:
Sara Thompson, a local community activist, has been operating a not-for-proﬁt center that
provides assistance to abused women and th...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.