How Sox, Sec, Aicpa, Fasb Affect The Comapny?

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How do Sarbanes-Oxley, SEC, AICPA, FASB, and other regulations affect the company? How do these impact internal controls and the information technology systems of the company? I have learned from my previous class of External Audit that the main reason why Sarbanes-Oxley Act, SEC, AICPA, FASB and other regulations exits is to force organizations to implement better and strong internal controls; And I also was informed from my professor that the following reasons are the top four reasons why organizations need to have strong internal controls and the IT auditor role will be to assist in verifying compliance: 1. The passage of the SEC Sarbanes–Oxley Act of 2002 (Public Law 107-204). Under this act, companies would be required to include an annual internal control report of management stating the following: a) Management’s responsibilities for establishing and maintaining adequate internal controls and procedures for financial reporting for the company b) Management’s conclusions about the effectiveness of the company’s internal controls and procedures for financial reporting as of the end of the company’s most recent fiscal year c) That the company’s registered public accounting firm has attested to, and reported on, management’s evaluation of the company’s internal controls and procedures for financial reporting. 2. Inherent security and control risk issues organizations face within virtual corporate environments and E-commerce business today. 3. Large corporate spending on information technology has demanded that there be a quantifiable approach to view not only a return on the corporation’s investment, but also assurance the products and services the company is paying for are performing and producing as intended. Therefore, it is incumbent upon management to review the effectiveness of these controls. 4. The current-day situation of “world

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