The Sarbanes-Oxley Act was an act passed by congress in 2002 so it would protect investors from fraudulent accounting of companies like Enron or Tyco. The Sarbanes-Oxley act had two provisions that were key. The first provision was section 302, which requires the senior management to make sure of the accuracy the financial statements. The second provision was a requirement that the management and auditors would establish internal controls and reporting methods of the controls. That means that you look at the Home Depot Company they will have a certain set of internal controls that have to follow the guide lines that the government set. These guideline make sure that the company will be able to show their investor everything they are doing 8and how they are using the money investor have put into the company. Having the right internal controls will show that that the company is not only working to become successful but also shows that it cares for the customers that they serve and the employees that lets them get to the place they have achieved so far. The Sarbanes-Oxley act may have made it stricter for companies to continue to do business, yet it has also made sure the company will make sure it will not fail because people wish to cover up the truth making it seem that everything is fine.
The relevance of auditing around the computer involves preparing the computer system to be audited as the accountants await the acceptable and suitable information that can be collected by matching the data with the productivity. In easier terms, auditing around the computer confirms the data and the results that are attained even though they are not concerned about how the inputs and outputs are prepared. The relevance of auditing around the computer often times means that this is also the type of audit that can be managed with a computer. However, today, the audit around the computer means an attempt to conduct an audit.
The relevance of auditing through the computer dictates the different measures that are used by means of auditors to examine the consumer’s computer programs. It is used to discover the dependability of the services that cannot be seen by any human view.
Auditing around the computer: There are many techniques of auditing around the computer. The methods are picking documents randomly and also confirming outputs with the inputs. Auditing around the computer is used when a great amount the computer controls will not be required.
Auditing through the computer: There are many steps of auditing through the computer that auditors can use for their client’s hardware or software. Auditing through the computer is consistent and can notice what the human eye might not see. Auditing through the computer is more common now then years ago because companies can use the information system and the internal controls. If it is not used, auditors can make a mistake and might not have the correct information or the effectiveness of having the auditing through the computer. Internal auditors mostly use auditing through the computer because there are less likely to have mistaken or