Compare Rule 101of the Sarbanes-Oxley Act (SOX, 2002) and Standard Essay

Compare Rule 101of the Sarbanes-Oxley Act (SOX, 2002) and Standard 1100-Independence and Objectivity - Essay Example embers to have such independence, so that they can monitor the activities of the organization as per the scope of audit and not be restricted for the same in any manner. Auditors are also required to remain objective towards the manner in which the audit processes are carried out. This includes them to be highly professional and not indulge in the development of personal relations. Internal auditors must diligently maintain the quality of their work by remaining unbiased and impartial with any aspect of the organization. Objectivity also requires mangers to maintain the confidentiality of the audit related matters (Muqattash, 2013). The Sarbanes-Oxley Act contains a number of provisions which impact the key elements of capital formation and audit. For auditors the Sarbanes-Oxley Act has established a revised set of rules which provides auditors with a new structure of private oversight and a revised set of rules related to independence and public reporting. In case of managers, the act provides adequate scope of safeguarding interests and reporting and exposure of internal control. The disclosure requirements have also been revised for managers. The act also lays emphasis on the ever expanding role of audit committees in respect of corporate reporting framework. The act also states that auditors have a direct responsibility towards supervising the external audit process. It also establishes revised rules in respect of the preapproval of all audit and non-audit services. Financial expertise, independence and monitoring are also covered under different titles of the act. It is expected that the act will improve t he manner in which audits are performed and improve financial disclosure, thereby preventing accounting fraud. One of the most important rules established under the section is that which is in respect of auditor independence. Various sections in respect of auditor services and rotation have also been discussed vividly. The rules established under the title