The Non-Audit Service Restrictions Of The Sarbanes-Oxley Act
- Topics:
- Sarbanes Oxley Compliance
- Tags:
- Act,
- Audit,
- Finance,
- Financial Accounting,
- Sarbanes-Oxley Act
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Overview: The Act's most significant impact on audit quality will be through the establishment of the new public accounting board, with its significant new inspection and disciplining powers. As for non-audit services, Congress established a "clear line" between permissible and prohibited non-audit services, but there already was such a line under the existing SEC rule. The impact of the Act in this area, therefore, will be to add information technology and internal audit work to the prohibited list (although the SEC was already headed in that direction on its own), and require greater audit committee scrutiny of non-audit services (although the NASD and exchanges were headed there as well). Audit committees will need to pre-approve non-audit services, but they will have flexibility in the procedures for doing so.
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Format: HTML | Date: Sep 2002 | Pages: 1
