The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because it
A) expanded the scope of the audit beyond financial information
B) required that organizations work with their auditors to design systems of internal control
C) required that external auditors report on the effectiveness of an organizations system of internal control
D) expanded the opportunities for auditors to engage in consulting activities with their audit clients

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act required external auditors to report on the effectiveness of an organization's system of internal control, which significantly changed the daily work of financial accountants and auditors. This requirement increased the rigor and scrutiny of audits and placed a greater emphasis on internal controls, which are critical to preventing financial fraud and misstatement.

The Sarbanes-Oxley Act of 2002 Dramatically Changed the Daily Work