A critical analysis of auditors' perception of the impact of Section 404 of the Sarbanes Oxley Act on audit quality: an Egyptian perspective
AbstractThe recent accounting scandals that have occurred in the USA have resulted in the issuance of the Sarbanes Oxley Act (SOX), with emphasis on Section 404 related to enhancing the companies' internal controls. This research study critically examines Section 404 requirements, surveying a sample of Egyptian auditors in a number of audit firms with international affiliations about their perception of the expected costs and benefits that could result from applying Section 404, and whether such requirements could have a positive impact on the quality of audit. The results provide evidence based on auditors' opinions that the benefits associated with Section 404 applications are expected to outweigh its costs, with possible reduction of Section 404 costs in the future period. Moreover, the results indicate that both the additional audit procedures required in the audit of internal control over financial reporting (ICOFR) and the increased legal liability that will be imposed on auditors through compliance with Section 404 requirements are expected to improve the quality of the audit process. The results of the study call for the application of similar requirements of Section 404 taking into consideration the characteristics and other elements affecting the Egyptian businesses, accounting and auditing profession.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Afro-Asian J. of Finance and Accounting.
Volume (Year): 2 (2010)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=214
SOX Section 404; audit quality; audit procedures; legal liability; internal control; external auditing; Egypt; Sarbanes Oxley Act; financial reporting.;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.