| Companies listed in the NYSE had to get an internal | | | | get maximum tax benefits etc. |
| audit department ready before 31 October making | | | | Sarbanes Oxley Act caused auditors to scrutinize |
| sure the new audit heads could evaluate the scope of | | | | financial reports carefully, as the consequences of |
| their departments work, as well as how to comply | | | | reporting them wrong were severe. The companies |
| with the new Sarbanes Oxley laws. They had to hire | | | | CEO and internal Audit head had to certify the |
| new directors and get an audit plan ready due to the | | | | accuracy of the financial statements personally. |
| provisions made in the Sarbanes Oxley law passed in | | | | Sarbanes Oxley and Internal Audit: |
| 2002. The companies had to hire personnel as well as | | | | Sarbanes-Oxley act has made it mandatory for |
| assign the new department a budget, determine how | | | | internal audit departments to |
| they will document compliances and how much work | | | | - Be consulted regarding internal control of the |
| to assign the audit department. Sarbanes Oxley Act | | | | company. |
| of 2002 has created a revolutionary change in the | | | | - Be consulted regarding enterprise risk management |
| corporate governance as well as internal control for | | | | strategies. |
| companies listed in the NYSE. This Act was passed to | | | | - Helping the company to identify, classify, and assess |
| check fraud and bring reliability to financial reporting. | | | | the risks, eliminating risks, as well as evaluating the |
| The act made it mandatory for companies listed in | | | | control methods adopted periodically. |
| NYSE to determine financial reporting risks, design | | | | - Recommend ways to control risks. |
| ways to manage the risks, fix problems creating such | | | | - Assisting in designing an internal control program for |
| risks, analyze the effectiveness of the control | | | | the company |
| measures taken, re test and re-document anew. | | | | - Recommending and drafting procedures for internal |
| Sarbanes Oxley Act had a profound impact on the | | | | control of a company. |
| internal auditors, who with their expertise in business | | | | - Help maintain the control repository. |
| process analysis, risk management financial and | | | | - Are project managers to all efforts taken to comply |
| operational control testing, who were suddenly in great | | | | with section 404? |
| demand and every company seemed to need their | | | | - Help design control effectiveness tests and help |
| services. Thus apart from their normal duties, the | | | | conduct the test and evaluate the results. |
| auditors found more and more of their time was taken | | | | The act thus created a great demand for companies |
| up trying to comply with Sarbanes-Oxley provisions. | | | | to have good internal audit departments and their |
| Companies that correctly and intelligently utilized the | | | | expert counsel. The role of auditors and internal audits |
| expertise of auditors have seen unprecedented | | | | in managing and guiding the company increased |
| success as they provide valuable guidance in several | | | | significantly due to Sarbanes-Oxley Act. There are |
| aspects of running a company such as risk | | | | firms that offer services as well as products to help |
| management, prioritizing goals, streamlining operations, | | | | run businesses successfully. |
| device ways to cut operating costs, help the company | | | | |