Question

Respond to the following in a minimum of 175 words:

Discuss the Sarbanes-Oxley Act. What effect has it had on companies’ auditing processes? In what was has this affect been a positive one?

*Please do not copy & paste from a prior answer, I mean no disrespect by any means but some of those answers are not helpful and the reason I posted a question. Thanks, I appreciate any assistance.

I received a prior answer which did not meet the needs of the questions, please respond in regular text and not based on opinion

Answer 1

Sarbanes-Oxley Act. - The Sarbanes-Oxley Act of 2002 is a federal law that established sweeping auditing and financial regulations for public companies. This law is created for the help to protect shareholders, employees, and the public from the accounting fraudulent and errors.

Effects on Companies 'Auditing Process'- Now the companies are not allowed to take consultancy services from the same firm which audits accounts of the company. It increases the consumption of time on audit process. It also effects the cost of audit. It also effects the privacy of companies data because government also involved in this audit.

Positive affect of Sarbanes-Oxley Act -   1. It increases the market trust which results good IPO pricing.

2. All financial statements are more transparent and accurate which is helpful for external as well as internal parties.

3.It's main focus on searching of accounting fraudulent and errors and save shareholders employees from that risk.

4 The quality of audit will improves and effectiveness and efficiency will shown in audit process.