The Sarbanes-Oxley Act prohibits which of the following?

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act prohibits public accounting firms from providing consulting services to its auditing clients. This is to prevent conflicts of interest and ensure the independence and objectivity of the audit process.

Choices A and B are not specifically prohibited by the act, although there are provisions that require consulting firms and auditors to disclose any relationships or agreements that may affect their independence.

Choice C is partially correct. The act does prohibit certain activities involving board members, such as hiring former audit partners or compensating them for non-audit services. However, it does not prohibit public accounting firm partners from serving on the boards of directors of non-auditing clients.

The Sarbanes-Oxley Act Prohibits Which of the Following