C254 fraud and forensic Accounting study Guide.

Section 404 of the Sarbanes-Oxley Act of 2002, provided for increased scrutiny over which area of corporate governance: - Internal controls design, implementation and effectiveness. Section 404 of SOX is probably the most well-known section of Sarbanes-Oxley that requires management to select an internal control framework and then assess the effectiveness and report annually on both the design and operational effectiveness of that framework. The five COSO framework areas - The five COSO framework areas are Control Environment, Risk Assessment, Control Activities, Information and Communication and Monitoring. The impact of Sarbanes-Oxley on the accounting and auditing profession was: - Significant because of the creation of the PCAOB and its responsibilities provided oversight and regulation for the profession. The creation of the PCAOB and its responsibilities by the SOX act provided oversight and regulation for the accounting and auditing profession for the first time in over 100 years. The corporate governance fabric - The corporate governance fabric is generally thought to include: board of directors, audit committee, senior / executive management, internal audit, external (independent) audit and regulators and governing bodies.