The Sarbanes-Oxley Act Placed Restrictions on the Types of Services

question 15

Multiple Choice

The Sarbanes-Oxley Act placed restrictions on the types of services that public accounting firms are allowed to perform for audit clients. Which of the following services are public audit firms now expressly prohibited from performing for their audit clients?

• A) Quarterly review services
• B) Tax services
• C) Bookkeeping services
• D) All of the above

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Definitions:

Balance Sheet

A financial statement that shows a company's financial position at a specific point in time by detailing assets, liabilities, and owner's equity.

Cash

Money in the form of coins or banknotes, typically used for transactions.

Fees Earned

Income generated from providing services to clients or customers, often recorded when the service is performed under accrual accounting.

Wages Payable

The total amount of wages that a company owes to its employees for work performed but has not yet paid.