Identify Three Ways the Sarbanes-Oxley Act Affects Accountants and Auditors

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The Answer is Three ways the Sarbanes-Oxley Act affects accountants and auditors are: (a)The Act provides for the establishment of a five-member Public Company Accounting Oversight Board to oversee the audit of public companies.The purpose is to further the public interest in the preparation of informative,accurate,and independent audit reports for public companies.(b)In order to make auditors more independent from their clients,the Act prohibits accounting firms from performing eight specified non-audit services for audit clients.Also,the lead audit partner having primary responsibility for the audit and the audit partner responsible for reviewing the audit must rotate at least every five years.(c)Auditors must report directly to the company's audit committee and make timely disclosure of accounting issues concerning critical accounting policies and practices used in the audit,alternative treatments and their ramifications,and other material written communications between the auditor and management.

Identify Three Ways the Sarbanes-Oxley Act Affects Accountants and Auditors

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