December 31, 2007
Sarbanes Oxley Act 404
The sarbanes oxley act 404 has also made it necessary for auditors to follow the new standard no. 5 to understand the Information Technology related aspects. This was so that they could identify the points where financial irregularities may take place. Sarbanes Oxley Act 404 now asks that the new standard 5 auditors perform fraud risk assessments which are considered to be rather a gray area in auditing. Failure to ensure sarbanes oxley act compliance can lead to auditor being punished along with management.
