Scope of Services Provided by Auditors - Section 208-3
- Topics:
- Sarbanes Oxley Compliance
- Tags:
- Audit,
- Finance,
- Financial Accounting,
- Service
- Source:
- Sarbanes-Oxley
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Overview: The article about Sec 208-3 defines Scope of Services Provided by Auditors: Section 201(a) of the Sarbanes-Oxley Act adds new Section 10A(g) to the Securities Exchange Act of 1934. Except as discussed below, this section states that it shall be unlawful for a registered public accounting firm that performs an audit of an issuer's financial statements (and any person associated with such a firm) to provide to that issuer, contemporaneously with the audit, any non-audit services, including the nine categories of services set forth in the Act. Additionally, the Act provides that the provision of "any non-audit service, including tax services, that is not described" as a prohibited service, can be provided by the auditor without impairing the auditor's independence "only if" the service has been pre-approved by the issuer's audit committee. The nine categories of prohibited non-audit services included in the Act are: Bookkeeping or other services related to the accounting records or financial statements of the audit client; Financial information systems design and implementation; Appraisal or valuation services, fairness opinions, or contribution-in-kind reports; Actuarial services; Internal audit outsourcing services; Management functions or human resources; Broker or dealer, investment adviser, or investment banking services; Legal services and expert services unrelated to the audit; and Any other service that the Board determines, by regulation, is impermissible.
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Format: HTML | Date: Jan 2003 | Pages: 1
