Which of the following is a prohibited non-audit service for an auditor of an issuer (public company) under Sarbanes-Oxley and PCAOB rules?

Answer options:

Tax compliance services pre-approved by the audit committee.

Bookkeeping or other services related to the accounting records or financial statements of the audit client.

Review of interim financial information.

Attestation services on internal control.

How to approach this question

SOX Prohibitions: Bookkeeping, IS Design, Appraisal, Actuarial, Internal Audit, HR, Broker-Dealer, Legal. Tax is usually okay.

Full Answer

B.Bookkeeping or other services related to the accounting records or financial statements of the audit client.✓ Correct

Bookkeeping or other services related to the accounting records or financial statements of the audit client.

Sarbanes-Oxley prohibits registered firms from providing bookkeeping, financial information system design, appraisal services, actuarial services, internal audit outsourcing, management functions, human resources, broker-dealer services, and legal services to their audit clients.

Common mistakes

Thinking tax services are prohibited (they are allowed with approval).

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