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Regulatory and Compliance Issues

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Regulatory and Compliance Issues
Reviewing the growth of the Sarbanes-Oxley Act (SOX) which was made based on the public business outrages. The WorldCom and The Enron issues, for instance, gave shareholders self-confidence in entities traded on the open markets throughout ’01 and ’02. Congress was very fast to answer to the political disaster and made the bill of the Sarbanes-Oxley Act of 2002, which eventually the bill was signed into edict by President Bush on July 30 to give self-assurance to shareholders (Carmichael, 2004).
SOX quickly changed the way in how public business takes internal controls and reporting within accounting and finance and the way the public companies business being administered. One of the most important objectives of SOX is to oversee public accounting, publicity reporting business and the investment commerce. In order to follow SOX objectives and to watch the acts of public accountancy, SOX created the Public Company Accounting Oversight Board (PCAOB). This particular board directs the accounting line of work and publicity reporting business with respect to reporting and audits (Mallor, Barnes, Bowers, & Langvardt, 2014).
The Public Company Accounting Oversight Board (PCAOB) members are enforced not to have any associations with the public companies or members of the companies so as to keep all terms of accountability fair and clear. PCAOB also generated rules made to guarantee that auditors of publicity reporting business are autonomous of the companies on which they report (Carmichael, 2004).

Do you think that the creation and work of the Public Company Accounting Oversight Board (PCAOB) has resulted in greater independence of auditors of public companies? Yes, It is obvious that an independent review board is required to guarantee that due diligence is being performed every time a public accounting firm…...

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