Sarbanes-oxley Act Conclusion Argumentative Essay Example

time and effort towards audits. To meet the requirements of the Sarbanes-Oxley act, internal audit committees have been given extra duties. The involvement, interaction, effectiveness, and overall comprehension of their role by these committees are closely scrutinized.

The duties of audit committees include appointing, compensating, retaining, and overseeing registered public accounting firms. These firms are responsible for preparing or issuing audit reports and conducting audits. The Sarbanes-Oxley legislation has also impacted the role of external auditors. Now, in addition to auditing financial statements, they must also audit a company's internal control. The relationship between senior management, audit committees, and external auditors has evolved, requiring communication with different levels of management.

Previously, senior management may not have dedicated time to reviewing company internal control measures. Although the new requirement is time-consuming and expensive, it has proven to be an effective tool in preventing fraud and ensuring accurate financial reporting. By assigning responsibility to multiple individuals within a company, all parties are compelled to give it proper attention.