The Sarbanes-Oxley Act of 2002 has been described as the most far-reaching legislation affecting business since the passage of the 1933 Securities Act.

Required

a. Identify the portions of the legislation that specifically affect the external audit profession and discuss how it affects the profession.

b. How does the legislation affect the internal audit profession? Identify activities that are implied in the legislation as well as activities that will likely emerge as companies implement various provisions of the Act.

c. Do you believe the legislation enhances the power and prestige of the audit profession or, alternatively, does it decrease both the power and prestige of the profession?