Final answer:
The Sarbanes-Oxley Act prohibits CPA firms from providing most consulting services to the public companies they audit, to maintain the independence of the audit and prevent conflicts of interest.
Step-by-step explanation:
The Sarbanes-Oxley Act, established in response to financial scandals involving corporations like Enron and WorldCom, prohibits CPA firms that audit public companies from providing certain types of services. Specifically, of the options listed, the Act restricts CPA firms from offering most consulting services to the companies they audit. This aims to prevent conflicts of interest and preserve the independence of the audit. Though the Act does have restrictions on other non-audit services, firms are still allowed to perform reviews of quarterly financial statements and to prepare corporate tax returns under certain circumstances. It also places limitations on tax services but does not outright prohibit them as it does with most consulting services.
The Sarbanes-Oxley Act prohibits a CPA firm that audits a public company from providing tax services to that company. CPA firms are not allowed to provide tax services to public companies they audit in order to maintain independence and avoid conflicts of interest.