The Sarbanes-Oxley Act of 2002 explicitly deals with the non-audit services which auditors can provide to their audit clients.Certain non-audit services may be permissible,without prior approval of a company's audit committee,if the non-audit services
A) constitute less than 5% of the audit fees for the corporation.
B) constitute less than 5% of the audit fees for the corporation and are not specifically identified as being barred by SOA 2002.
C) constitute less than 20% of the audit fees for the corporation.
D) Auditors are barred from any and all non-audit services for their audit clients according to SOA 2002.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 allows certain non-audit services to be provided without prior approval of the audit committee, as long as these services constitute less than 5% of the audit fees for the corporation and are not specifically identified as being barred by the Act. Therefore, choice B is the best answer. Choices A and C are incorrect because their percentage thresholds are inaccurate. Choice D is also incorrect as it is an extreme statement, and the Act does allow for certain non-audit services to be provided under specific circumstances.

The Sarbanes-Oxley Act of 2002 Explicitly Deals with the Non-Audit