The following situations involve the provision of nonauditservices. Indicate whether providing the service is a violation of AICPA rules or SECrules including Sarbanes–Oxley requirements on independence. Explain your answer asnecessary.a. Providing bookkeeping services to a public company. The services were preapprovedby the audit committee of the company.b. Providing advice to a private company client on accounting for a merger withanother private company.c. Providing internal audit services to a public company that is not an audit client.d. Implementing a financial information system designed by management for a privatecompany.e. Recommending a tax shelter to a client that is publicly held. The services were preapproved by the audit committee.f. Providing internal audit services to a public company audit client with the preapprovalof the audit committee.
The following situations involve the provision of nonaudit
services. Indicate whether providing the service is a violation of AICPA rules or SEC
rules including Sarbanes–Oxley requirements on independence. Explain your answer as
necessary.
a. Providing bookkeeping services to a public company. The services were preapproved
by the audit committee of the company.
b. Providing advice to a private company client on accounting for a merger with
another private company.
c. Providing internal audit services to a public company that is not an audit client.
d. Implementing a financial information system designed by management for a private
company.
e. Recommending a tax shelter to a client that is publicly held. The services were preapproved by the audit committee.
f. Providing internal audit services to a public company audit client with the preapproval
of the audit committee.
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