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Generally Accepted Auditing Standards (GAAS) are Standards against which the quality of audits are performed and judged.  In the U.S., Standards are promulgated by the Auditing Standards Board (ASB), a division of the American Institute of Certified Public Accountants (AICPA).  Since the passage of the Sarbanes-Oxley Act of 2002 (SOX), the Public Company Accounting Oversight Board (PCAOB) has developed standards for publicly traded companies.  Sections 103(a)(2)(A) and SOX 404(b) of the SOX Act directed the Board to establish Professional standards governing the independent auditor's attestation and reporting on management's assessment of the effectiveness of Internal Control Over Financial Reporting (ICFR).

Auditing Standard 2 (AS2) was the initial standard released to provide public accounting firms guidance regarding the requirements to comply with Sarbanes Oxley. Due to the many difficulties faced by firms and issuers in the early years of compliance, the PCAOB released Auditing Standard 5 (AS5) in 2007 which superseded AS2. AS5 was designed to provide clearer guidance and eliminate some of the questions that had plagued firms and companies through the initial years of attestation. AS5 is the current auditing standard for SOX compliance. However, it is important to have an understanding of AS2, it’s expectations and challenges be able to appropriately scope and understand the transition to AS5. This course will provide an outline of both legislations and highlight the challenges and applications of the SOX standards. It is important for professionals to have a strong understanding of the concepts outlined in both auditing standards and the impetus for change that resulted in AS5. This course is designed to provide a strong understanding of these concepts.

Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Note: The concepts outlined in this course are up to date and relevant in regards to the Sarbanes-Oxley legislation. Although there have not been any changes in the legislative concepts of the law since it’s release in 2002, some aspects of executing the work have evolved. This speaker is preparing a series of courses titled “Sarbanes-Oxley 20 years later”. Those courses can be found individually on the platform and would be beneficial for anyone involved with compliance.

NOTE: The Instructor has created 5 new segments on Sarbanes-Oxley Update - 20 Years Later:
Sarbanes-Oxley Update - 20 Years Later: Accounting Risk Assessment Considerations
Sarbanes-Oxley Update - 20 Years Later: Sourcing Emerging Risks Part 1
Sarbanes-Oxley Update - 20 Years Later: Evaluating Testing Processes
Sarbanes-Oxley Update - 20 Years Later: Sourcing Emerging Risks Part 2
Sarbanes-Oxley Update - 20 Years Later: Examining Fraud Risks

Learning Objectives
  • Explore the background of the Sarbanes-Oxley Act of 2002 (SOX) and recognize the purpose of SOX audit standards
  • Explore Auditing Standard 2 (AS2)
    • Management assessment process,Top down approach
    • Fraud, Terms, Entity level controls and walkthroughs
  • Explore Auditing Standard 5 (AS5)
    • Key changes, Top down approach
    • Entity controls, Significant Accountants, Definitions
  • Explore the Next Phase - The 2013 Committee of Sponsoring Organizations (COSO) Framework
Last updated/reviewed: August 18, 2023

Included In Certifications

This course is included in the following Certification Programs:

15 CoursesSarbanes-Oxley (SOX) Certification

  1. Sarbanes Oxley Overview
  2. Sarbanes-Oxley (SOX) Standards - Evolution
  3. Information Technology General Controls Primer
  4. COSO 2013 Overview
  5. Sarbanes-Oxley (SOX) Section 404
  6. Sarbanes-Oxley Section 302: ICFR
  7. Sarbanes-Oxley (SOX) And Fraud Sections
  8. Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 1
  9. Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 2
  10. Sarbanes-Oxley (SOX) - Entity Level Controls
  11. Sarbanes-Oxley (SOX) Identifying and Documenting Controls
  12. Sarbanes-Oxley (SOX) Testing
  13. Sarbanes-Oxley (SOX) - Assessing Data Impact
  14. XBRL - Connection to SOX 302/404 and Critical Roles
  15. Tools For Sarbanes-Oxley Compliance
64 Reviews (244 ratings)

Reviews

5
Member's Profile
The material was at the right level of detail and presented well. While not a big deal, I did want to mention that there appeared to be some background noise that sounded like a grandfather clock and a wrapper rattling. Not sure if that was something in my connection or if it was in the recording. Great class overall.

4
Member's Profile
While understanding the history of events are important, I would like to see more real life scenarios. There is a lot of mention about other webinars to reference, but no mention of how to view them or the names. Overall still good stuff!

4
Anonymous Author
Another great course on the evolution of SOX standards. I enjoyed the moderator and thought notes were east to follow. I believe some questions on test had yet to be covered but could be guessed based on information to date.

4
Anonymous Author
It was very well structured, well-paced and easy to follow training course. Structuring the course in segments as well as offering a continuous play option is perfect for any learning style. The examples given were good.

5
Anonymous Author
This is a really useful overview of how the auditing standard have evolved and therefore indicates how the relationship between the external auditors and the company the provide services will also have evolved.

3
Anonymous Author
I expected more focus on the key changes and less on very detailed explanation on the evolution. I found difficult the questions in the exam, I could not find the link to the presentation in many points.

3
Anonymous Author
The topics were drawn out and redundant with other courses in this certification program. The test questions were too tricky and did not assess general knowledge of the topics (in my opinion).

4
Anonymous Author
This course provides an excellent comparison of the two standards, including the challenges and benefits of each. Content is appropriate for all professionals involved in the audit process.

4
Member's Profile
Good information and very detailed explanation of differences in AS2 and AS5. I feel though there was to much emphasis on AS2 and not enough on the true changes between AS2 and AS5

5
Anonymous Author
Very well structured, concise and easy to follow training course. Structuring the course in segments as well as offering a continuous play option is perfect for any learning style.

4
Member's Profile
Material was presented in a clear and consistent way. My only minor issue is that some of the content was duplicative of other courses in the SOX Compliance certificate program.

5
Anonymous Author
This course on the evolution of the SOX standards adequately outlined how the standard has progress, and more importantly, why the progression was necessary. Very informative.

4
Member's Profile
Overall training really great. the differences between the standard 2 and standard 5. But the exam was not exciting as have evaluated more the standard 2 topics

5
Anonymous Author
Very good session on the difference between AS2 & AS5 as well as some contentious definitions and the interpretations of those by various stakeholders.

5
Member's Profile
Very informative. I'm surprised at how much more I need to learn about AS 5. All professionals, including auditing instructors will benefit here.

5
Member's Profile
As someone who have worked with SOx only for two years, I can say that the course does a great job describing its history and evolution.

4
Anonymous Author
This course 'Sarbanes-Oxley (SOX) Standards - Evolution' gives an understanding of why there was a change required from AS 2 to AS 5.

5
Anonymous Author
Enjoyed a refresher. Thank you for taking the time to create this informative course! I will look into your other SOX courses.

5
Anonymous Author
This course gives a good understanding of how AS2 evolved to AS5 and the issues associated with them leading into COSO 2013.

5
Anonymous Author
Well-presented, organized and informative. Leads to a clear understanding of the history behind SOX audit standards.

5
Anonymous Author
This course does an excellent job going over where the PCAOB came from with AS2 guidance and the conversion to AS5.

5
Member's Profile
Great course that serves as a refresher for SOX in companies looking to establish an internal controls framework

5
Member's Profile
Course was adequate. I like the extreme detail which the author used to tell the story about the evolution of Sox

5
Member's Profile
good course, well explained a lot of valuable information for those who are starting learning about it now.

4
Anonymous Author
Clear and concise. It was a surprise for me all the things that happened to have the current SOX controls.

5
Anonymous Author
Great overview of the standards of how these have evolved and the interrelationship between SEC and PCAOB

5
Anonymous Author
A good and very thorough course on the evolution of SOX Auditing Standards. No stone is left unturned!

5
Member's Profile
Excellent - gave me a good understanding of SOX by providing the history and timeline of the changes.

5
Member's Profile
Excellent information on how SOX evolved. It's important to understand this today and moving forward.

5
Member's Profile
excellent walk through of the evolution of the AS supported by personal experience of the spaeker

5
Anonymous Author
This course was excellent and provided very useful information that I will utilize in the future.

5
Anonymous Author
Excellent course to keep updating the SOX knowledge and keep up to date with the latest changes.

4
Anonymous Author
This course discusses the background story of AS2 and AS5 as well as the transition to COSO ERM

5
Anonymous Author
This was a good overview of SOX Standards evolution. Course content were clear and to the point

5
Member's Profile
Very well-designed course and informative as well. Thanks for the great learning experience.

5
Anonymous Author
Necessary course for preplanning and developing the SOX infrastructure within an organization.

4
Anonymous Author
Very meaningful and informative course gives a very good understanding on standard evolution.

4
Anonymous Author
Clear and organized presentation. Helpful background information and focus on key concepts.

5
Member's Profile
Good information related to the changes in the pendulum of efficiency over time in audits

4
Anonymous Author
This course gave good understanding of background and reasons to change from AS2 to AS5.

4
Anonymous Author
The course gave a detailed overview of past pronouncements related to Sarbanes Oxley.

5
Member's Profile
Good discussion on the SOX changes and Approach. The topic give a great insights.

5
Anonymous Author
This course gave a good overview of the evolution of SOX, especially AS2 vs. AS5

3
Anonymous Author
Provided an understanding of where the initial SOX audit standard came from

4
Member's Profile
Very good course, Its good to have a one presentation rather than many

5
Anonymous Author
Very helpful as starting a new position in SOX after coming from Audit

3
Anonymous Author
Please show the answers to the questions wrong after passing the exam.

4
Member's Profile
Good comparison of AS2 and AS5. Good background information to know.

5
Member's Profile
This course provide clear understanding of Auditing Standard 2 and 5

5
Anonymous Author
The material was succinct and straightforward. Very well thought out.

4
Member's Profile
Again, easy to understand. Takes you through at a reasonable pace.

5
Member's Profile
The information and examples provide a clear view of the concepts.

5
Anonymous Author
great training..the differentiation of AS2 and AS5 is important.

5
Member's Profile
Great evaluation of the evolution of the SOX auditing standards.

5
Anonymous Author
Objectives Met, Appropriate requirements, Activties completed

4
Member's Profile
I completed the course and there's no comments from my side.

5
Anonymous Author
Tough questions but great knowledge learned, as usual!

4
Member's Profile
A lot of materials but well presented for this section.

5
Member's Profile
Clarity between AS2 and AS5.Top-down risk assessment

4
Anonymous Author
This clarified AS2 vs AS5 and was useful information.

5
Member's Profile
Great course explaining evolution of SOX standards.

3
Anonymous Author
Nice overview of AS 5 and how it evolved from AS 2.

4
Anonymous Author
This course provided a lot of valuable information.

4
Anonymous Author
Very Informative

Prerequisites
Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. 

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Questions and Answers(2 Questions)
User picture

I work on the financial reporting side of accounting, so am taking your SOX courses to increase my SOX/audit knowledge. In this course you mentioned to look up evaluating financial statement line items. When I did that, it looks like the numbering system for the auditing standards was changed recently. I don't really understand the audit standards like I do the FASB codification, so it was kind of confusing for someone who hasn't worked with the standards before. It's still a good course but maybe a reference table could be provided.I did find the below table matching the old numbering system to the new system, but still not sure where to find information on evaluating financial statement line items.

https://pcaobus.org/Standards/Auditing/Documents/PrintableReferenceTable.pdf

Member's Profile

When I mentioned evaluating financial statement line items, I am not referring specifically to the audit standards. For SOX, the auditing standard that is currently in effect is AS5. If you look up AS5, it provides information on the factors to use in performing a top down risk assessment (they should also be listed in a few of my SOX courses). Evaluating these factors when looking at your accounts will assist in determining which ones are the most significant.

I suggest you consider looking into taking the SOX certificate course that is on Illumeo. This will give you a comprehensive view of the SOX standard and how to evaluate the accounts.

Hope this helps

Instructor for this course
Course Syllabus
INTRODUCTION and OVERVIEW
  Introduction to The Evolution of Sarbanes-Oxley (SOX) Auditing Standards4:27
  Background 9:24
  Auditing Standard 2 6:53
Difficult Concepts
  Management's Assessment Process 9:45
  Definition of Terms 9:28
  Entity Level Controls and Walkthroughs 6:56
Evolution
  Evolution of Changes12:20
  Top Down Approach 14:02
  The Bottom Line 8:49
CONCLUSION
  The Next Phase 8:16
Continuous Play
  The Evolution of Sarbanes-Oxley Auditing Standards1:30:20
SUPPORTING MATERIALS
  Slides: The Evolution of Sarbanes-Oxley (SOX) Auditing StandardsPDF
  The Evolution of Sarbanes-Oxley (SOX) Auditing Standards Glossary/IndexPDF
REVIEW and TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam