Introduction

The Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 known Decree 30 July 2002 as a response to a number of major corporate and accounting scandals including those of Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. The scandal that cost investors billions of dollars when the share prices of companies involved collapsed, shook public confidence in the securities markets in the nation.

The Bill contains new or improved standards for boards of all U.S. public companies, management and accounting firms. It does not apply to private companies. The Act contains 11 titles, or sections, the implementation of additional Corporate Board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC), the decision on the conditions that the new law. The debate continues about the benefits and costs of SOX. Proponents argue that the law was necessary, and played an important role in restoring public confidence in capital markets in the nation, including the strengthening of the company’s accounting controls.

The Law establishes a new quasi-public, the Public Company Accounting Oversight Board, or PCAOB, which is responsible for monitoring, regulating, controlling and disciplining accounting firms in their roles as auditors and public corporations. The Act also covers issues such as auditor independence, corporate governance, internal control assessment and improvement of financial disclosure.

Internal Auditor

Internal Audit is an occupation and activities in support of the organization to achieve its objectives involved. It does this by providing a systematic method for analysis of processes, procedures and activities, identify organizational problems and recommend solutions. Professionals as internal auditors of organizations are used to perform internal auditing.

The scope of internal audit within a large organization and my participation in issues such as the effectiveness of the measures, the reliability of financial reporting, deterring and investigating fraud, asset protection and compliance with laws and regulations. Internal audit is often measure compliance with policies and procedures of the company. However, internal auditors advise not responsible for the execution of business activities, management and the Board of Directors (or similar governing body) as in the performance of their duties. Because of their broad scope of the intervention, the internal auditors have a variety of more educational and employment system history.

an external auditor

An external auditor is an audit professional who is conducting an audit on the financial statements of the enterprise, government, individual or other entity or organization that is independent of the audited place. Information users of those financial companies, such as investors, government agencies and the general public rely on the external auditors to make an impartial assessment and independent entities, they are different from internal auditors for two reasons: (1). Primary responsibility for internal auditors to assess the company’s strategy and risk management, control and governance frameworks, and (2) they have no opinion on the financial statements unity. In addition to providing audit services, external auditors and various other services. Most of them are general financial statement review and compilation. Given auditors are usually for tick and tie and get numbers in the general ledger administration. In compiling the auditors are required to take a look at financial statements to ensure that they are free of obvious inaccuracies and errors.

The role of the external auditor is to express an opinion on the financial statements of a company are free of material misstatement. Some people confuse listeners with people, but the detection auditors have nothing to do with the detection of fraud only. Accounts want to make sure that the financial statements of the company are the true representation of the cultural heritage and its actual position. If they come across any information about fraud, it is their responsibility to bring the attention of management and consider the obligation, if management does not take appropriate measures. Normally, external auditors review the procedures of the company’s control of the overall evaluation of the internal control system. You also need to consider all issues through a survey of professional or regulatory authorities, such as the local tax authorities levied. For publicly traded companies in the U.S., the Sarbanes-Oxley (SOX) strict requirements of the external auditors in assessing internal controls and financial reporting introduced.

The external auditor independence is crucial for a correct and complete assessment of financial controls and reporting. Any relationship between external auditors and the company, other than the retention of the test itself must be disclosed in the reports of external auditors. These rules also forbid that provide the auditor with an interest in public customers and limit the types of non-audit services they can.

Job

Labor Department reported that employment of accountants and auditors is expected to grow 18 percent 2006-2016, which is faster than the average for all occupations. This occupation will create a very large number of new jobs, almost 226 000 more than ten projections. A growing number of businesses, changing financial laws and rules of corporate governance and increased accountability for protecting an organization’s stakeholders to drive growth.

As the economy grows, will increase the number of business establishments to set up more accountants and auditors books, prepare taxes, and provide management advice. As these companies grow, the volume and complexity of data reviewed by accountants and auditors regarding costs, expenses, taxes, and expand the internal controls as well. Economic globalization has also led to greater demand for accounting expertise and services related to international trade and accounting rules and international mergers and acquisitions. created

An increased demand for accountants and auditors also of changes in legislation on taxation, financial reporting standards, business investments, mergers and other financial events is. After accounting scandals at several large companies, Congress passed the Sarbanes-Oxley Act of 2002 in an effort to be fraud to the detriment of the company fighting. This law requires public companies to maintain well-functioning internal controls to ensure the accuracy and reliability of financial reporting. He is also CEO of the company personally for false accounting and reporting.

These changes should lead to better control the company finances and accounting and should be opportunities for accountants and auditors, CPA to create particularly to examine the financial statements more accurate. Management accountants and internal auditors will increasingly be needed to discover and eliminate fraud before audits, and ensure that important processes and procedures are recorded accurately and thoroughly. In addition, authorities are making efforts more efficient and accountable will increase demand for government accounting.

Increased emphasis on the number of economic crime such as embezzlement, bribery and fraud, securities will increase the demand for accountants to detect illegal financial activity by individuals, companies and networks of organized crime. Computer technology to commit these crimes easier, and they rise. Simultaneously, the software development and new technologies of electronic surveillance has been looking for financial criminals easier, thus the ease and likelihood of, discovery. to grow as success rates of investigations, the demand for accountants will increase.

The changing role of accountants and auditors also will spur job growth, although it will be slower than in the past because of changes in the law. Federal legislation now prohibits accountants from providing many types of management services and advice to clients whose books they audit. However, accountants will still be possible, customers who are not publicly traded and those that do not control them advice.

In addition, the increasing popularity of tax preparation and accounting software companies will pass on the tax preparation. As computer programs to simplify certain tasks in the accounting department staff continue to increasingly handle many routine calculations.

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