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over significant nonroutine and nonsystematic transactions, company level controls.

Evaluating the likelihood that failure of the control could result in a misstatement, the magnitude of such a misstatement, and the degree to which other controls, if effective, achieve the same control objectives. Evaluating the design effectiveness of controls.

Evaluating the operating effectiveness of controls based on procedures sufficient to assess their operating effectiveness. Testing the controls of the internal audits is one of the procedures' (gallerco, 2004).

Communicating the findings to the auditor and to other people. Evaluating whether the findings are reasonable and support management's assessment.

Standards to financial, operational, and compliance audits
Standards to the financial audits are 'Independence – auditors should be independent of management and shareholders.

Professional judgment should be used in planning and performing audits and attestation engagements, and in reporting the results. This requires auditors to observe the principles of serving the public interest and maintaining the highest sense of integrity, objectivity, and independence in applying professional judgment in all aspects of their work.

Competence - The staff assigned to perform the assignment should collectively possess adequate professional competence for the tasks required. This standard places responsibility on audit organizations to ensure that staff who collectively have the knowledge, skills, and experience necessary for that assignment performs each assignment.

Quality Control and Assurance - Each audit organization performing assignments in accordance with GAGAS should have an appropriate internal quality control system in place and should undergo an external peer review. They should follow adequate quality control policies and procedures, and applicable government auditing standards.

Affect from SOX and PCAOB
Publicly traded companies do not like the requirements that are placed upon them, all due to Section 404. Companies and auditors are the ones that have to prepare themselves for any problems that arise, such as compliance issues. The cost of doing business will be increasing, so the PCAOB has given the smaller companies that make around $75-200 million a one-year reprieve. All this states is that it is given the smaller companies a chance to learn from the experiences of the larger ones. Since larger companies have more money, such as investments in compliance, it helps reduce the cost to the smaller companies. Also, companies are not allowed to outsource their audit work to external auditors. Increased salaries to board members, more people to be employed that specifically knows about these types of compliances are just one of many things that a company can expect to happen. If any publicly traded company wants to stay in business, then they must comply.

Additional Requirements
Publicly traded companies are 'required to have semi-annual financial statements reviewed by independent auditors and to submit these statements to the SEC' (worldbank, 2002).

Conclusion
Auditing has been around for quite some time. As years pass, additional requirements have come about and other requirements have b