Sarbanes-Oxley Act of 2002
Terms in this set (5)
What were SOX's Major accounting provisions?
1. Established the PCAOB
2. Adopted reforms to strengthen independence
3. Requires the CEO and CFO to certify annual and quarterly reports to the SEC
4. Requires reporting about effectiveness of internal controls
How many members are in the PCAOB?
How many members of the PCAOB can be CPAs?
What does the PCAOB have authority to do?
-Establish standards for the preparation and issuance of audit reports
-Conduct investigations, gather testimony, and produce documentation through the power of subpoena
-The power to suspend auditors, revoke the registration of accounting firms or impose other penalties
What auditor independence reforms did SOX put in place?
-Limit on services allowed to give to audit client (see independence section)
-Supervising partner rotation every 5 years
-1-year gap for CEO, CFO, or Controller who worked with accounting firm
-Requires comptroller to study effects of requiring periodic audit firm rotation
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