The Sarbanes-Oxley Act of 2002 male significant reforms for public companies and then auditors. Describe the events that led up to the passage of the Act. Describe the major changes made by the Act Auditors must consider the possibility of fraud by employees or management 00 every audit engagement They must also consider the possibility that the client has not complied with laws. Distinguish between employee and management fraud. Describe the auditors' responsibility for the detection of fraud in an audit Describe the auditors' responsibility regarding noncompliance with laws by a client. The Sarbanes-Oxley Act of 2002 placed significant restrictions on the types of consulting that may be performed by auditors for their public company audit clients. List four types of services that are prohibited by the Act List three types of general consulting activities that would impair die auditors' independence based on the AICPA Code of Professional Conduct