Audit quality has improved because of changes introduced by Sarbanes-Oxley, a
US audit body has said.
The US Centre for Audit Quality released a report this week showing that 78%
of the 253 public company audit committee members surveyed by the Center rated
overall audit quality as either ‘very good’ or ‘excellent.’
Eighty-two percent said it has improved somewhat or significantly in the past
several years while a further 60% agreed that the risk of fraud had declined
after the introduction of SOX in 2002,
Sixty-five percent of the respondents agreed that investors should have more
confidence in the markets as a result of SOX, while 58% said that changes
resulting from SOX had a positive impact.
The most common reasons given for the improvement includes increased audit
committee oversight, requirements regarding internal controls, better
communication with audit committees, more rigorous audits, increased emphasis on
quality by auditors, and audit committee oversight of the auditors.
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As a change-agent, internal audit has a lot going for it, but many internal audit functions need to upgrade their skills.
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