What is the Sarbanes-Oxley Act? How does act affect the audits for the accounting firm and for the organization? Has the Sarbanes-Oxley Act improved the quality of the audit? Explain your response.The Sarbanes-Oxley Act (SOX) is where it is illegal to provide certain nonattest services to clients and it has changed the regulation of the auditing profession by creating the PCAOB. The SOX act affects accounting firms and organizations by telling what activities an auditor is responsible for and the what activities are unlawful for the auditor to perform. This would include bookkeeping or any service related to financial statements, management functions and any services that the PCAOB determines is impermissible. The SOX act has improved the audit by reminding auditors that they are to serve the interest of investors, and it has strengthen their independence from clients. This act help stop the self policing by establishingthe PCAOB which gave auditors more peace of mind as to what they have to do and the rulesthey need to abide by.,Response 2The Sarbanes-Oxley Act of 2002 had a number of provisions that influenced the auditing environment. For auditors the Sarbanes-Oxley Act of 2002 made it illegal to provide certain non-attest services to clients and changed the regulation of the auditing profession. It also changed the audit environment by imposing increased penalties for management of public companies who engage in fraudulent financial reporting. The Sarbanes-Oxley Act of 2002 makes it “unlawful” to perform audit services for a public company and also perform the following non-attest services for audit clients. The Sarbanes-Oxley Act of 2002 strengthened penalties imposed on management of public companies who are found responsible for false and misleading financial statements. ,,,,,,,,, Reference:Boynton, W. C., & Johnson, R. N. (2006). Modern auditing (8th ed.). Hoboken, NJ:
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