Conduct research to determine the impact of the Sarbanes-Oxley Act (SOX), Generally Accepted Accounting Principles (GAAP), Generally Accepted Auditing Standards (GAAS), and the International Financial Reporting Standards (IFRS) on the accounting profession and decision-making of publicly traded companies. In discussing the Sarbanes-Oxley Act (SOX), explain the following:
The purpose of SOX, describe SOX Titles I-VI. Use this Web site as a good reference. Explain specifically why external auditors are no longer permitted to do significant consulting for a firm that it is auditing.
Describe why most companies expect significant added costs to their firm as a result of SOX compliance. Sources used for this project should be largely comprised of the following:
Authoritative accounting pronouncements and standards published by the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB),the Public Company Accounting Oversight Board (PCAOB), the American Institute of Certified Public Accountants (AICPA), and the Securities and Exchange Commission (SEC). Public laws passed by Congress.
Discuss the following: Active GAAP and IFRS Convergence projects of the FASB and IASB. Also analyze the Potential impact on business and the accounting profession of changes in accounting standards or securities laws.