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Accounting firms may not audit the corporation for which they

provide regular accounting services. True or False?

1 Answer

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False. Accounting firms may provide regular accounting services to a corporation and still audit their financial statements, but they must comply with certain rules and regulations to maintain their independence and avoid conflicts of interest. Under the Sarbanes-Oxley Act, accounting firms are prohibited from both auditing a client and providing certain consulting services for the same client. However, there is no general prohibition on accounting firms auditing the corporation for which they provide regular accounting services. The SEC has established rules and regulations to ensure auditor independence, including prohibiting certain relationships between audit firms and the companies they audit
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User Aalok Sharma
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