Under the Sarbanes-Oxley Act,which of the Following Services Is a CPA

question 13

Multiple Choice

Under the Sarbanes-Oxley Act,which of the following services is a CPA prohibited from providing to his or her CPA firms' audit clients?

• A) Tax return preparation services to the audit client, under all circumstances
• B) Tax return preparation services to the audit client, even if the client's Audit Committee preauthorizes these services
• C) Tax return preparation services of personal tax returns for key officers of the audit client
• D) Tax planning services that assist management in developing tax-minimization strategies

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Definitions:

Statement of Cash Flows

An overview illustrating the effects of changes in balance sheet positions and earnings on the availability of cash and similar assets.

Interrelationship

Interrelationship refers to the way in which two or more concepts, objects, or people are connected and affect each other.

Balance Sheet

A record that provides an overview of a company's assets, the liabilities it carries, and shareholder equity, focused on a precise date.

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders after debts and liabilities have been settled.