Nonaudit services provided that are not prohibited by the Sarbanes-Oxley Act and SEC rules must be preapproved by the company's audit committee.

Question

Quizplus · Accepted Answer

This is true. The Sarbanes-Oxley Act and SEC rules require that all nonaudit services provided by the external auditor to a public company, which are not specifically prohibited, must be preapproved by the company's audit committee to maintain auditor independence and objectivity.

Nonaudit Services Provided That Are Not Prohibited by the Sarbanes-Oxley