Sarbanes-Oxley and the Securities and Exchange Commission restrict auditors from providing many consulting services to their publicly traded audit clients. Which of the following is true for auditors of publicly traded companies?
I. They are restricted from providing consulting services to privately held companies.
II. There is no restriction on providing consulting services to non-audit clients.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act and the Securities and Exchange Commission (SEC) rules restrict auditors from providing many consulting services to their publicly traded audit clients to ensure independence and reduce conflicts of interest. However, these restrictions do not apply to privately held companies or to non-audit clients, meaning auditors can provide consulting services to these entities.

Sarbanes-Oxley and the Securities and Exchange Commission Restrict Auditors from Providing