One of the specific requirements of the Sarbanes-Oxley Act (SOX) is that:
A)Auditors should not evaluate internal controls since they are management's responsibility.
B)Auditors of a client are restricted as to what consulting services may be provided.
C)The person leading the audit should remain the same indefinitely to maintain consistency.
D)A modest penalty is imposed for any violation of the SOX guidelines.
E)Auditor's work on a client engagement is overseen directly by the FASB.

Question

Quizplus · Accepted Answer

The specific requirement of the Sarbanes-Oxley Act (SOX) stated in option B is that auditors of a client are restricted as to what consulting services may be provided. This means that auditors are prohibited from providing certain non-audit services, such as bookkeeping, financial information systems design and implementation, and other services that have a direct impact on the financial statements. This is intended to maintain auditor independence and ensure that audit quality is not compromised by conflicts of interest. The other options are not specific requirements of SOX.

One of the Specific Requirements of the Sarbanes-Oxley Act (SOX)