SOX was passed in 2002 to protect public from corporate fraud. Named after Paul Sarbanes and Michael Oxley, who drafted it. Aims to improve financial reporting transparency and internal controls
Assurance services provide independent professional opinions to improve decision-making. Services reduce information risk through independent professional opinions
Due diligence emerged after 1929 stock market crash with Securities Act of 1933. Security brokers must audit companies before securities sales. Legal due diligence serves as standard defense against negligence claims
Auditing is an objective examination of company's financial statements. Audits ensure financial information is represented fairly and accurately. Three primary financial statements: income, balance sheet, cash flow
Auditors verify financial records to detect errors and fraud. Audits prevent malpractices and ensure compliance with regulations. Auditors gather evidence to support their conclusions
IPE refers to information provided by the audited entity during an audit. IPE can include both financial and non-financial information. System-generated reports from service organizations are considered IPE