Question

What are some types of services the auditor of a public company cannot perform for his/her...

What are some types of services the auditor of a public company cannot perform for his/her client under audit according to the sarbanes -Oxley act?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

According to Sarbanes - Oxley Act, the auditor is prohibited from providing the following non-audit services to an audit client including its affiliates:

Bookkeeping
Financial information systems design and implementation
Appraisal or valuation services, fairness opinions, or contribution-in-kind reports
Actuarial services
Internal audit outsourcing services
Management functions or human resources
Broker-dealer, investment adviser, or investment banking services
Legal services and expert services unrelated to the audit

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sarbanes–Oxley Act Compliance As a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information...
Sarbanes–Oxley Act Compliance As a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information Systems Auditor (CISA) you have been asked to perform an audit of company records in support of the Attest function to verify the annual statements. The inventory balances from the computerized system are reported to be $121 million, but reports from field auditors show that balances are severely overstated. In discussions with employees and managers, you find some overlap in functions with certain personnel...
Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet? A....
Under the Sarbanes-Oxley Act, which requirement must an accounting firm that audits public companies meet? A. The firm cannot provide several nonaudit services, such as bookkeeping, to its audit clients B. The firm cannot audit a company for more than five years C. The firm cannot use any forms of advertising to obtain new clients D. The auditor must be retained by the CFO rather than the audit committee
The Sarbanes-Oxley Act of 2002 a) Requires the Public Company Accounting Oversight Board (PCAOB) be composed...
The Sarbanes-Oxley Act of 2002 a) Requires the Public Company Accounting Oversight Board (PCAOB) be composed of seven members. b) Requires the Public Company Accounting Oversight Board (PCAOB) have CPAs for a majority of its members. c) Changes rules on auditor independence, adopting a more flexible, principles-based approach rather than one based on prohibitions of certain types of non-audit services to audit clients d) Mandates integrated audits for public companies                                                               Which of the following statements would be least...
The Public Company Accounting Oversight Board (PCAOB) was created as a result of the Sarbanes-Oxley Act....
The Public Company Accounting Oversight Board (PCAOB) was created as a result of the Sarbanes-Oxley Act. It has oversight and enforcement responsibilities over accounting firms in the United States. a. What is the mission of the PCAOB?b. b. Briefly summarize its responsibilities related to inspections. c. Briefly summarize its responsibilities related to enforcement.
Assume that in connection with your audit of the financial statements of Cheatum, Inc. you have...
Assume that in connection with your audit of the financial statements of Cheatum, Inc. you have identified some circumstances that may be considered deficiencies in internal control -indeed some might be considered significant deficiencies or even material weaknesses. Answer the following questions about Andy Auditor, the job's senior, which abstracts (summarizes) from the professional standards (AU-C 265, effective for audits of financial statements for periods ending on or after December 15, 2012). 1. Whether a preference exists in the standards...
The auditor completed the audit of financial statements with an unquified opinion. The client company wanted...
The auditor completed the audit of financial statements with an unquified opinion. The client company wanted to make a voluntary disclosure of some supplemental information to the financial statements in the 10-K, and the auditor agreed. However, the auditor found a highly material misstatement in the supplemental information. The client refused to correct the error. Can the auditor still issue a report on the supplemental information? Explain. If yes, what should be the auditor's opinion on the supplemental information, and...
If an external​ auditor's client has used a service organization during the year for some of...
If an external​ auditor's client has used a service organization during the year for some of its payroll processing and​ accounting, which of the following steps should the external auditor take if he or she decides to use the service organization​ auditor's report as audit evidence that the​ entity's controls are operating effectively for certain​ assertions? Doubleminus−date A.the audit report to show the date of the service​ organization's audit and the date of the​ client's audit. B.Consider the sufficiency and...
An auditor may perform the following three types of substantive procedures: (a) tests of details of...
An auditor may perform the following three types of substantive procedures: (a) tests of details of transactions; (b) tests of details of balances; and (c) analytical procedures. Below are specific audit procedures that fall within one of these categories: 1. Reconcile supplier statements at the year-end with balances in the purchase ledger. 2. Agree a sample of sales invoices to goods despatch records held in the inventory system. 3. Review post year-end receipts from customers to establish the extent of...
What tasks does the physician perform to provide health care services? Describe the specialties of family...
What tasks does the physician perform to provide health care services? Describe the specialties of family practitioners, pediatricians, and surgeons? Explain the difference between licensure and certification. What are some of the differences between LPNs and RNs? Describe one type of advanced practice nurse. What is a Nurse Practice Act? As a patient, do the demographic characteristics of health care provider (gender, race, age) make any difference to you? Should part of providers’ education include more diversity training? Why or...
Assume you are an auditor, and your client is a public company with a large portfolio...
Assume you are an auditor, and your client is a public company with a large portfolio of available-for-sale equity securities. The client reports these securities at fair value, with unrealized gains and losses recognized in “other comprehensive income,” an equity account, each period. The client is preparing its quarterly financial statements and is again, for the second consecutive quarter, recording a decline in market value for several of the securities. These securities’ fair values are now below their cost. From...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT