Question: The Sarbanes-Oxley (SOX) Act of 2002 was enacted to strengthen corporate governance. The audit committee was one of the essential requirements of the Act. Complete the following for this assignment:
1. Explain the responsibilities of the audit committee and its effect in preventing fraudulent financial reporting.
• Financial accuracy
• Risk management
• Control assessment
• External auditor oversight
• Efficient use of internal audit
2. Explain how internal auditing contributes to the effectiveness of the purpose and goals of the Sarbanes-Oxley Act.