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The video discusses the Sarbanes-Oxley Act (SOX) and the Dodd-Frank Act. Summarize three key learnings you obtained from the video. Based on your own independent research, why were these two acts passed in the first place? Do you agree with the speaker that the acts have put an undue burden on US businesses? Why or why not? Do you agree with the speaker that SOX discourages companies from going public? Why or why not?
Some auditors claim that increased exposure under Section 404 of the SOX creates a litigation environment that is unfairly risky for auditors. Do you think that the inability of auditors to detect a financial statement misstatement due to internal control fraud in a timely manner should expose auditors to litigation? Why or why not? What can auditors do to ensure they do not violate any ethical guidelines and conduct audits in a professional manner?