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Contrast the applicability of the Sarbanes-Oxley Act to domestic public accounting firms versus foreign public accounting firms.
Any foreign public accounting firm that prepares or furnishes an audit report shall be subject to the Act in the same manner as a public accounting firm (Gibson, 2013).
9. Describe the recognition of accounting standards by the Commission as provided.
The commission may recognize any accounting standard body that is organized as a private entity, that has a board of trustees, that is funded as in section 109 of the Sarbanes-Oxley Act of 2002, and that has adopted procedures to ensure prompt consideration and changes to accounting principles necessary to reflect emerging accounting issues and changing business practices (Gibson, 2013).
10. Comment on the funding for the: 1. Board. 2. Financial Accounting Standards Board.
The board is funded and maintained by the Annual Accounting Support Fee. or by more appropriate designated collection agents, as may be necessary or appropriate to pay for the budget and provide for the expenses of that standard setting body, and to provide for an independent, stable source of funding for such body, subject to review by the Commission (Gibson, …show more content…
Preapproval Required for Non-Audit Services (Gibson, 2013).
12. Describe management’s responsibility in relation to internal controls.
The Commission annually prescribes the rules for internal control structure and procedures for financial reporting. Part of the internal control, the firms must prepare an attestation in accordance with standards for attestation engagements issued or adopted by the Board. Any such attestation shall not be the subject of a separate engagement (Gibson, 2013).
13. Speculate on why Title IV, Section 404, “Management Assessment of Internal
Controls,” has received substantial criticism.
I think because the Commission prescribes the rules yearly, which creates confusion and inconsistencies of the standard rules due to the changes that might
Any foreign public accounting firm that prepares or furnishes an audit report shall be subject to the Act in the same manner as a public accounting firm (Gibson, 2013).
9. Describe the recognition of accounting standards by the Commission as provided.
The commission may recognize any accounting standard body that is organized as a private entity, that has a board of trustees, that is funded as in section 109 of the Sarbanes-Oxley Act of 2002, and that has adopted procedures to ensure prompt consideration and changes to accounting principles necessary to reflect emerging accounting issues and changing business practices (Gibson, 2013).
10. Comment on the funding for the: 1. Board. 2. Financial Accounting Standards Board.
The board is funded and maintained by the Annual Accounting Support Fee. or by more appropriate designated collection agents, as may be necessary or appropriate to pay for the budget and provide for the expenses of that standard setting body, and to provide for an independent, stable source of funding for such body, subject to review by the Commission (Gibson, …show more content…
Preapproval Required for Non-Audit Services (Gibson, 2013).
12. Describe management’s responsibility in relation to internal controls.
The Commission annually prescribes the rules for internal control structure and procedures for financial reporting. Part of the internal control, the firms must prepare an attestation in accordance with standards for attestation engagements issued or adopted by the Board. Any such attestation shall not be the subject of a separate engagement (Gibson, 2013).
13. Speculate on why Title IV, Section 404, “Management Assessment of Internal
Controls,” has received substantial criticism.
I think because the Commission prescribes the rules yearly, which creates confusion and inconsistencies of the standard rules due to the changes that might