Week 5 DQ 3
How has the Sarbanes-Oxley Bill influenced reporting by governmental agencies and not-for-profit organizations? Does the Public Company Accounting Oversight Board have authority to establish auditing standards for not-for-profits? What specific steps might governmental agencies or not-for-profits take to comply with the requirements of the Sarbanes-Oxley Bill?
1. Reporting for governmental agencies and not-for profits has become more detailed including management representations related to the fairness of their financial statements and an assessment of the effectiveness of internal controls. In addition, audit standards have changed through the implementation of the Single Audit Act. As a result, auditors for all governmental and not-for-profit organizations must issue reports on the effectiveness of internal controls and compliance with laws and regulations and the requirements of major programs.
2. No, the Public Company Accounting Oversight Board was provided authority by Congress, to establish auditing standards for publicly traded corporations. The American Institute of Certified Public Accountants still holds the responsibility of standard setting for governments and not-for-profit entities, however, their recent pronouncements have been influenced by the PCAOB.
3. Steps that governmental and not-for-profit agencies may take in order to comply with the requirements of the Sarbanes-Oxley Bill include: restructuring their Board of Directors to include and audit committee consisting of financial experts in various areas who will be able to provide expertise in developing and maintaining financial control, providing enhanced assessments of the effectiveness of internal controls and representations related to the fairness of the presentation of the financial statements, and providing enhanced measures to ensure that a greater level of auditor independence has been achieved in order to comply governmental audit standards.
To comply with the
1. Reporting for governmental agencies and not-for profits has become more detailed including management representations related to the fairness of their financial statements and an assessment of the effectiveness of internal controls. In addition, audit standards have changed through the implementation of the Single Audit Act. As a result, auditors for all governmental and not-for-profit organizations must issue reports on the effectiveness of internal controls and compliance with laws and regulations and the requirements of major programs.
2. No, the Public Company Accounting Oversight Board was provided authority by Congress, to establish auditing standards for publicly traded corporations. The American Institute of Certified Public Accountants still holds the responsibility of standard setting for governments and not-for-profit entities, however, their recent pronouncements have been influenced by the PCAOB.
3. Steps that governmental and not-for-profit agencies may take in order to comply with the requirements of the Sarbanes-Oxley Bill include: restructuring their Board of Directors to include and audit committee consisting of financial experts in various areas who will be able to provide expertise in developing and maintaining financial control, providing enhanced assessments of the effectiveness of internal controls and representations related to the fairness of the presentation of the financial statements, and providing enhanced measures to ensure that a greater level of auditor independence has been achieved in order to comply governmental audit standards.
To comply with the