Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Question
Chapter 29, Problem 15P
Summary Introduction
To discuss: How the provisions of Sarbanes-Oxley Act would affect the corporate governance.
Introduction:
Sarbanes-Oxley is an act that was enacted in the year 2002 by Country U’s Congress, mainly to avoid the occurrence of misconduct. Its main aim is to protect the investors from corporate abuse.
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The American Competitiveness and Corporate Accountability Act of 2002 is otherwise known as the Sarbanes-Oxley Act. Provisions of this law significantly affected capital markets, corporate governance and the Accountancy Profession especially the area on auditing. true or false?
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What is the link between auditing and corporate governance?
Chapter 29 Solutions
Corporate Finance
Ch. 29.1 - Prob. 1CCCh. 29.1 - Prob. 2CCCh. 29.2 - Prob. 1CCCh. 29.2 - Prob. 2CCCh. 29.3 - What is the main reason for tying managers...Ch. 29.3 - Prob. 2CCCh. 29.4 - Prob. 1CCCh. 29.4 - Prob. 2CCCh. 29.5 - Prob. 1CCCh. 29.5 - Prob. 2CC
Ch. 29.5 - Prob. 3CCCh. 29.6 - Prob. 1CCCh. 29.6 - Prob. 2CCCh. 29 - Prob. 1PCh. 29 - Prob. 2PCh. 29 - Prob. 3PCh. 29 - Prob. 4PCh. 29 - Prob. 5PCh. 29 - Prob. 6PCh. 29 - Prob. 7PCh. 29 - Prob. 8PCh. 29 - Prob. 9PCh. 29 - Prob. 10PCh. 29 - Prob. 11PCh. 29 - Prob. 12PCh. 29 - Prob. 13PCh. 29 - Prob. 14PCh. 29 - Prob. 15PCh. 29 - Prob. 16PCh. 29 - Prob. 17PCh. 29 - Prob. 18PCh. 29 - Prob. 19PCh. 29 - Prob. 20P
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- Describe how the Sarbanes-Oxley Act of 2002 has impacted the role of auditors.arrow_forwardWhat is the role of an internal auditor in enhancing good corporate governancearrow_forwardExplain how internal auditors’ sensitivity to ethical dilemmas might be influenced by corporate governance mechanisms.arrow_forward
- What additional constraints and obligations do auditors face when doing nonaudit services for public companies?arrow_forwardHow have the Sarbanes–Oxley Act's requirements impacted a public company's ability to choose its auditors?arrow_forwardWhat additional constraints and obligations do auditors face when offering nonaudit services to public companies?arrow_forward
- Which of the following is NOT a major component of the Sarbanes-Oxley Act? Executive responsibility for accurate financial reporting. Accounting regulation. Mandating external financial audits for all companies. Formation of an audit committee.arrow_forwardWhat is the role of an auditor in the implementation of corporate social responsibility in an organization?arrow_forwardExplain one way the external auditor's responsibilities regarding a public company's system of internal controls have changed since SAS 78 became effective in the late 1990s. Were these changes necessary? Do you believe the changes have been effective at reducing risk for the company and the users of the financial statements? Explain your rationale.arrow_forward
- Explain auditors understanding of corporate governance revision, update and arguments after SOX Act (2002)arrow_forwardWhat is the role of the Sarbanes-Oxley Act and the Public Company Accounting Oversight Board?arrow_forwardWhich of the following is true about the Sarbanes-Oxley Act? A. It was passed to ensure that internal controls are properly documented and tested by public companies. B. It applies to both public and smaller companies. C. It requires all companies to report their internal control policies to the US Securities and Exchange Commission. D. It does not require additional costs or resources to have adequate controls.arrow_forward
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