of dollars when the share prices of affected companies collapsed, shook public confidence in the nation's securities markets.
This act shows that all dishonest corporate leaders must be exposed and punished. It also made loose standard and false profit exist no longer in business world. In the bill a restriction to an auditor was added saying that accounting firms should rotate the in-charge pa
of justice
→ Collapse in June 2002
Auditing & Consulting done together
In 2000, Enron paid Andersen $25 million for auditing and $27 million for consulting
Q: “How can any auditor be independent when his client is paying this kind of money?”
Sarbanes-Oxley Act , 2002
Setting up the PCAOB(Public Company Accounting Oversight Board)
Define Accounting & Auditing principles
Overs
1. Strategic alignment of information security with business strategy to support organisational objective.
2.Risk management by executing appropriate measures to manage and mitigate risks and reduce potential impacts.
3. Resource management by utilising information security knowledge and infrastructure efficiently and effectively.
4. Performance measurement by measuring, monitoring and repo
In case of study Independency(1) - H big Company
Board regulations and institutions, no matter how well the owner oftheboard, even if maintained composed of people if it suits the Council can not function properly.
H Big company in South Korea which the owner designate outside directors and chairman oftheboard chairman is responsible. In this case, the owner can present objections to the el
∙ GASC (The German Accounting Standards Committee)
- Task : Oversee GASB.
⇒ GASC is duly recognized by the Ministry of Justice as the
German standard-setting authority.
∙ GASB (The German Accounting Standards Board)
- Task : Technical work or Issue the accounting standard.
⇒ GASB is made up of 7 independent experts with a background
in auditing, financial analysis,