What is GAAP & SOX Audit?

Question

Accepted Answer

GAAP & SOX Audit are accounting standards that ensure financial reporting accuracy and prevent fraud.

GAAP (Generally Accepted Accounting Principles) is a set of accounting standards that companies must follow when preparing financial statements.
SOX (Sarbanes-Oxley Act) is a law that requires companies to establish internal controls and procedures to prevent financial fraud.
SOX also requires companies to have an external audit of their financial statements to ensure compliance with GAAP and detect any potential fraud.
The audit process involves reviewing financial records, testing internal controls, and verifying the accuracy of financial statements.
The goal of GAAP and SOX is to ensure that financial reporting is accurate and transparent, which helps investors make informed decisions and promotes trust in the financial system.

What is GAAP &amp; SOX Audit?