A net loss always increases liabilities. a. True b. False ...

[Ebrown]

A net loss always increases liabilities.
 a. True
   b. False
   Indicate whether the statement is true or false

Question 2

Discuss the impact that the Sarbanes-Oxley Act of 2002 had on internal auditing.
 
  What will be an ideal response?

[aidanmbrowne]

Answer to Question 1

False

Answer to Question 2

Section 404 of SOX requires companies to include in their annual reports a statement regarding the effectiveness of internal controls and the disclosure of any material weaknesses in a firm's internal controls system. This requirement has greatly boosted the need for internal auditors and SOX compliance specialists, but more important, has enhanced the value of the internal audit function within companies, as businesses have strengthened internal controls in response to SOX.