Auditor must:
• Evaluate management’s process for:
• Determining controls and locations to be tested
• Evaluating the design effectiveness
• Evaluating operating effectiveness
• Obtain an understanding of internal controls
• Inquiries of personnel who perform controls
• Observe performance of controls
• Review documents to support application of controls
• Compare supporting documents to the accounting records
• Determine effectiveness of the audit […]

Act requires the following Management role:

to assess internal controls over financial reporting
to report on the assessment
subject the assessment to audit

In the Management’s annual report on internal control, they must state the following:- management’s responsibility for establishing and maintaining an adequate internal control structure and
procedures for financial reporting, and
-Contain management’s assessment, as of year-end, of the […]

Sarbanes-Oxley is a US law passed in 2002 to strengthen Corporate governance and restore investor confidence. This Act affects corporate governance, financial disclosures, and public accounting. This Act was passed directly in response to the collapse of Enron, WorldCom and others.

The Act was sponsored by US Senator Paul Sarbanes and US Representative Michael Oxley

Administered […]