Question

Which of the following statements regarding professionalism in the late 1990s is INCORRECT?

1) Public dissatisfaction with professional auditing resulted in passage of the Sarbanes-Oxley Act of 2002 (SOX) and the creation of the PCAOB to provide oversight of the auditors of public companies.
2) The public was not satisfied with the quality of audits of public companies.
3) About 18
4) Auditors failed to find many material misstatements on a timely basis and many times management had to restate earnings due to material misstatements disclosed by other means than the audit.

Answer 1

The incorrect statement is regarding professionalism in the late 1990s is that public dissatisfaction with professional auditing resulted in the passage of the Sarbanes-Oxley Act of 2002 (SOX) and the creation of the PCAOB to provide oversight of the auditors of public companies.

Step-by-step explanation:

The incorrect statement regarding professionalism in the late 1990s is:

1. Public dissatisfaction with professional auditing resulted in passage of the Sarbanes-Oxley Act of 2002 (SOX) and the creation of the PCAOB to provide oversight of the auditors of public companies.

The correct statements are:

1. The public was not satisfied with the quality of audits of public companies.
2. Auditors failed to find many material misstatements on a timely basis and many times management had to restate earnings due to material misstatements disclosed by other means than the audit.