citations must be perfect according to APA standards. must use scholarly sources as well.Prior to the Sarbanes-Oxley Act of 2002 (“SOX”), auditing companies had engaged in non-auditing functions with the corporations they audited. Although this had been cause for concern by the SEC, rules were not promulgated until mandated by Sarbanes-Oxley. Now, auditing companies are forbidden to perform non-auditing services simultaneously with auditing services. Auditing companies must now contract with the audit committee of the corporation they propose to audit, rather than with the management of the corporation, as had been the practice before. SOX also made the audit committee directly responsible for the appointment, compensation, and oversight of any work done by the auditors. Do you think this will change the nature of how an audit is done? Do you think it will prevent the auditors from engaging in practices that could undermine the intent of SOX? Do you think the added layer of requiring the CEO and CFO to certify the work of the auditing committee helps to bring back the balance that was lost by commingling accounting practices and auditing practices?
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