Auditor Independence Under SOX Includes Categories of Services That a Public

question 85

Essay

Auditor independence under SOX includes categories of services that a public accounting firm cannot perform for a client.List five prohibited functions.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and sell stocks.

Organization Chart

A visual representation of the hierarchical structure of an organization, showing relationships between different positions and departments.

Delegation of Authority

The process by which authority is distributed to lower levels of management within an organization to make decisions and complete tasks.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and typically rights to dividends and a vote in corporate matters.