While the Sarbanes-Oxley Act Prohibits Auditors from Providing Non-Accounting Services

question 70

True/False

While the Sarbanes-Oxley Act prohibits auditors from providing non-accounting services to their audit clients,they are not prohibited from performing such services for non-audit clients or privately held companies.

---

Definitions:

Accounts Receivable Turnover

A financial ratio that measures how often a company collects its average accounts receivable balance over a period.

Inventory Turnover

A metric that measures how many times a company's inventory is sold and replaced over a specified period.

Total Current Assets

The sum of all assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.

Common Stock

A type of security representing ownership in a corporation, giving holders a share of the company’s profits via dividends.