Auditor Independence

2. This 2002 law shifted responsibility for appointing and overseeing the external auditor away from management and toward the audit committee.
5. A firm's relationship with this may cause auditors to “sweep things under the rug"
9. This once-major accounting firm did not survive the fallout from Enron.
10. The governance group that is supposed to oversee the external auditor on behalf of shareholders.
11. Auditing watchdog's playful nickname.
12. Auditors must remain free from inappropriate client influence.

1. Concern SOX sought to reduce when audit firms performed services that could put them on both sides of a client relationship.
3. SOX Section 203 addresses independence by requiring a rotation of _________.
4. True or false: SOX Section 201 restricts auditors from providing certain services outside of the audit itself.
6. One of the major corporate scandals that helped trigger the passage of SOX.
7. Corporate failures that helped trigger stronger auditor-independence rules.
8. Before SOX, this group had more influence over the selection of the company’s external auditor.