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Discuss impact of sarbanes-oxley act

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Reference no: EM131618034

Question: Impact of Sarbanes-Oxley Act. Your long-time client, Central Office Supply, has been rapidly expanding, and the board of directors is considering taking the company public. CEO Terry Puckett has heard that costs of operating a public company have increased significantly as a result of the Sarbanes-Oxley Act. Puckett is particularly concerned with reports that audit fees have doubled because of internal control provisions of the act and PCAOB Auditing Standard No. 5. Puckett has asked you to explain the possible effects on the audit of complying with the requirements of Sarbanes-Oxley.

Required: Draft a letter to Puckett outlining the changes in the company's responsibilities for internal control and changes in the audit due to Sarbanes-Oxley and PCAOB Auditing Standard No. 5.

Reference no: EM131618034

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