Recent accounting scandals raised serious questions about the legitimacy of an accounting firm performing both auditing and consulting work for the same company.

Question

Quizplus · Accepted Answer

The purpose of legislation such as the Sarbanes-Oxley Act is to prevent conflicts of interest occurring when an outside accounting firm is hired to perform both auditing and consulting services for a company.

Recent Accounting Scandals Raised Serious Questions About the Legitimacy of an Accounting