The Impact and Effect of the Sarbanes Oxley Act on the Internal Audit Profession: Chief Audit Executives' Perspectives.
Academy of Accounting and Financial Studies Journal 2008, Jan, 12, 1
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Publisher Description
ABSTRACT The Sarbanes Oxley Act of 2002 (specifically Section 404) requires management to assess the effectiveness of internal financial controls and instructs auditors to report on whether the controls are adequate or have material weaknesses. The Sarbanes Oxley Act ("SOX") has increased the focus on internal audit departments as a key partner in assisting management and the board of directors (especially audit committees) in fulfilling their corporate governance activities. Using a questionnaire, we conducted a study of chief audit executives (CAEs) within the insurance industry to obtain their perspectives on the impact and effect of SOX on their departments and profession. We were primarily interested in their involvement in the initial implementation and ongoing SOX compliance efforts, and any change in their departments' missions. We were also interested in the CAEs opinions on the role of internal audit in the future especially in light of SOX.