QUESTION 7 OF 23

Explain how the Sarbanes-Oxley Act changed the auditing profession.

The Sarbanes-Oxley Act is major legislation passed in 2002 that substantially changed the accounting and auditing professions. It was enacted in response to major fraud scandals such as Enron and WorldCom. The interviewee should know the Act in detail, as it is a key driver of the profession, but a summary here will suffice.

"The Sarbanes-Oxley Act was passed into legislation in 2002 in response to fraud scandals like Enron. The goal of SOX was to protect investors and employees from fraudulent reporting. As a result, there is a greater onus on auditors to provide assurance that financial statements are free of material misstatement. For example, auditors are now required to test a company's internal controls and report on their effectiveness. Additionally, there are stricter requirements for financial statement disclosures."

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Audit Manager Mock Interview

Explain how the Sarbanes-Oxley Act changed the auditing profession.

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23 Audit Manager Interview Questions & Answers