The Sarbanes–Oxley Act of 2002
rder Instructions
Address the following:
1. The Sarbanes–Oxley Act of 2002 created the Public Company Accounting Oversight Board (PCAOB) to oversee the work of public accounting firms performing financial statement audits for public filers, those with publicly traded securities on a U.S. stock exchange. For this discussion, select a publicly traded company and retrieve their most recent 10-K (annual filing), which includes the report of the independent audit firm. Read the opinion rendered in the audit report. Then, visit the PCAOB website and review the Auditing Standard (AS) 1215: Audit Documentation.
Explain how the audit documentation requirements detailed in AS 1215 help to support the opinion that the auditor rendered in their report.
Support your conclusions with at least two specific requirements detailed in AS 1215.
2. The learning activities this week focus on the role of the planning stage and evaluation of internal controls in performing a financial statement audit.
• Visit the PCAOB website and review the Auditing Standard (AS) 2101: Audit Planning.
• Identify three specific planning activities detailed in AS 2101 and explain how those activities will support the auditor’s evaluation of management’s assessment of internal controls over financial reporting.
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