Problem 1: Have you ever thought about why companies have to reinvent themselves, just to keep from having to go out of business, because of changing business conditions? Please give your comments and thoughts.
Problem 2: Sarbanes-Oxley Act of 2002 has been described as the most far-reaching legislation affecting business since the passage of the 1933 Securities Act. Do you believe the legislation enhances the power and prestige of the accounting profession, or alternatively, does it decrease both the power and prestige of the profession? Explain.
Problem 3: Have any companies that would have been under the ACT gone private and delisted from one of the stock exchanges just to get out from under the act. What would be the reason?
Problem 4: Give pros and cons of such action. Has this changed in any way the relationship between a CFO and the Board of Directors and/ or the independent auditor?
Problem 5: Why are internal controls important?
Problem 6: Can a company put too much emphases time and money on internal controls?
Problem 7: Why would an accountant be interested in knowing about Auditing standard 5 on internal controls?
Problem 8: Why is it management's responsibility to develop and put in place an effective internal control system?
Problem 9: Why should the CFO take the lead on this project?
Problem 10: What do you think is the main difference between accounting and auditing?
Problem 11: What is the difference between internal auditors and accountants?
Problem 12: What do external independent auditors do when they audit a Corporation?
Problem 13: Should all accounting errors made during the year also be corrected during the year even if first discovered during the year-end audit?