Answered: Prior to SOX, external auditors were…

Prior to SOX, external auditors were required to be familiar with the client organization’s internal controls, but not test them. Explain.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prior to SOX, external auditors were required to be familiar with the client organization’s internal controls, but not test them. Explain.

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