Essay heading: 20 Questions Auditors should ask about Sarbanes Oxley

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Business

 

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September 3, 1997

 

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27 / 7343

 

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Corporate governance sets the tone of an organization by determining the degree of data integrity involved. Furthermore, since management is given responsibility over the effectiveness of internal controls, it could be stated that good governance equates to the adoption of strong internal controls (and information technology), which consequently leads to the production of quality financial reports...
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Because of this, it is essential to determine management's initiative towards corporate accountability and the priority it holds, as it is fundamental in attaining the objective of SOX. From an auditor's perspective, this also helps establish whether reliance on management is warranted, and if such an audit engagement should be accepted in the interest of the accounting firm...
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