In: Business and Management. Classroom Hints This case provides students with an opportunity to understand what is meant by quality control in the financial statement audit process and to understand why a quality control mechanism is an important internal control procedure for an audit firm. Further, the case provides a terrific example for students to see what can actually happen when quality control breaks down at an audit firm. In the case of Arthur Andersen, the breakdown in quality control ultimately led to the demise of the firm. We believe it is essential for students to carefully read over the recommended technical knowledge, along with this case reading.
The Effects of SOX and PCAOB on Auditing Practice
Guide to PCAOB Inspections Summary Review | My Best Writer
In regulating the public accounting industry in the United States, the Public Company Accounting Oversight Board PCAOB serves three major functions: setting auditing standards, inspecting registered public accounting firms and enforcing auditing standards. In this writing assignment, you need select 3 inspection reports of firms that failed to address the quality control QC criticisms from the PCAOB in a satisfactory manner. Note: You MUST read page 75 of your textbook in order to understand the relevant audit standards involved in private and public audits. Generally, different audit standards are used for each. Do not reference standards that are related to private audits.
Audit – PCAOB: Inspection Report Academic Essay
Congress on July 30, The primary reason was to protect investors from the possibility of fraudulent accounting activities by corporations. The act is commonly known as SOX Act.
Please reply to 1 other student in 2 paragraphs. In the second paragraph, add some additional comments of your own that add to the discussion. Each reply must be at least words. Ever since the development of Sarbanes-Oxley SOX , all segments and fields of accounting were affected and had to make proper adjustments for new rules and regulations.