What are the key points of the ‘‘Issuer and Management Disclosure’’ of the Sarbanes-Oxley Act?

Q: Who has responsibility for internal control in an organization? According to guidelines set forth in…

A: Sarbanes Oxley Act: In order to protect the rights of an investor from fraudulent practices by the…

Q: Why is the concept of independence such an internal part of AICPA Code?

A: AICPA is American Institute of Certified Public Accountants, which is the leading organisation and…

Q: What are management’s responsibilities under Sections 302 and 404?

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Discuss the responsibilities of and auditor’s expert.

A: The auditor’s expert refers to the organization or an individual that possesses expertise in a…

Q: What is management's responsibilities for reporting internal control under Section 404 Sarbanes…

A: Internal control is an important part of every organization. It helps in maintaining the efficiency…

Q: Explain how materiality affectsaudit reporting decisions.

A: American Institute of Certified Public Accountants (AICPA): AICPA is the organization which supports…

Q: What are the roles of internal and external auditors?

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: Which is the primary source of SEC independence rules?

A: The primary source of SEC independence rules is Rule 2-01   Rule 3526 deals with the communication…

Q: What purpose do audits and GAAPs serve in today’s business world?

A: GAAP are the generally accepted accounting principles which are followed by the companies in the…

Q: What does the disclosure principle require?

A:

Q: tion (b) the capture theory of regulation (c) the economic interest theory of regulatio

A: a) Assumptions in public interest theory:i. The regulatory body is considered to representthe…

Q: Support for Politicization of rule making for accounting standards

A: The politicization of accounting rulemaking should not be viewed in a narrow sense. As accounting…

Q: Explain the reasons for the need of corporate governance code

A: Corporate governance is the bedrock of any successful company. It refers to the procedures, methods,…

Q: How does the Sarbanes-Oxley Act relate to internal controls?

A: Sarbanes-Oxley act was formed in 2002. It was made to restrict the fraudulent financial reporting.…

Q: Which standards apply to consulting engagements?

A: Certified Public Accountant (CPA): It is a position which is provided to the person who passes the…

Q: Should organisations operate in the interest of shareholders or the stakeholders?

A: Stakeholder means those person who use and study the financial statement and make the appropriate…

Q: Why was the Sarbanes-Oxley Act developed and enacted?

A: Introduction:- The Sarbanes–Oxley Act of 2002 is a federal law in the United States that sets…

Q: What are theresponsibilities of the company’s auditor?

A: An auditor is an independently qualified person who is appointed to give shareholders an…

Q: The auditor's report contains a number of important disclosures, and it's important to know what…

A: Introduction : This question tells about  a number of important disclosures, and it's important to…

Q: What is an agency problem?

A: Agency problems also known as principal-agent problems  are conflicts of interest between managers…

Q: Which of the following parties is responsible for the fairness of the representations made in…

A: Financial statements include the Income Statement, Balance Sheet, Statement of Cash flows, and…

Q: How do Input controls affect management's assertions with respect to the financial statements?

A: Management assertions seem to be statements made by management personnel about certain features of a…

Q: What is the audit committee’s contribution to strategy?

A: An audit committee is a committee which looks after, directs and guides for the financial process,…

Q: What are management's and auditors' relative internal control responsibilities

A: Introduction:Management establishes internal controls. To preserve the integrity of the financial…

Q: What are the responsibilities of management described in Section 404 of the Sarbanes-Oxley Act?

A: As per Section 404 – Sarbanes-Oxley Act, It is compulsory and mandatory for all the public trading…

Q: Describe the term certificate of compliance?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Why is independence the main conduct the most important in the GAAS

A: Generally Accepted Auditing Standards (GAAS) are a set of detailed instructions that auditors follow…

Q: The committee of the board of directors who is in charge of monitoring circumstances that might…

A: In an organisation, various type of committees are being made and every committe has its purposes,…

Q: Which of the following is a benefit of providing financial information? O Auditing. O Potential…

A: Financial information in the business means financial statements in the business that shows…

Q: what are the responsibility of Board members with regards to internal controls?

A: Internal Controls Internal controls refer to the rules, regulations, or processes implemented by a…

Q: What is business risk? and How does it affect audit risk?

A: Business Risk: Business risks are elements which have an adverse effect on the performance and…

Q: What are the responsibilities of management described in Section 404 of the Sarbanes-Oxley Act? What…

A: Following are the responsibility of Management describe in section 404 of the Sarbanes-Oxley Act:…

Q: what audit determines whether organizational policies are being followed and whether external…

A: A compliance audit is a thorough examination of a company's conformity to regulatory requirements.…

Q: Explain the Key Provisions of the Sarbanes-Oxley Act.

A: Due to a lot of financial scandals which occurred in the early 2000s particularly Enron Scandal,…

Q: To whom is the auditors’ report addressed?

A: The financial statement of a company is examined by an independent auditor with regard to their…

Q: What is the full disclosure principle?

A: Principles are followed by the business for preparing financial reports.