Troy University Consistency of Financial Statements Discussion

Part 1

The mission of the PCAOB is to restore the confidence of investors, and society generally, in the independent auditors of companies. There is no doubt that repeated revelations of accounting scandals and audit failures have seriously damaged public confidence. Users of financial statements expect auditors to assume a greater responsibility for detecting fraud and providing assurance that the financial statements are free of material fraud.

Summarize one of the Auditing Standards (Links to an external site.) (AS No. 1 – AS No. 16) and explain how the PCAOB auditing standards will help auditors to plan and perform an audit that will detect material misstatements resulting from fraud.

Part 2

The Sarbanes-Oxley Act of 2002 (SOX) fundamentally changed the financial reporting process for public company auditors, company management and independent audit committees.

Watch the Sarbanes-Oxley, Ten Years Later discussion, presented by the Center for Audit Quality (CAQ), to mark the 10th anniversary of the law’s passage at New York Ideas. Discuss how the Sarbanes-Oxley Act improved the audit quality and enhanced investor’s confidence in the auditing profession and the capital markets.