Asked by marissa ciavatta on May 11, 2024
Verified
SOX prohibits public accounting firms from providing tax services to their clients.
SOX
Refers to the Sarbanes-Oxley Act of 2002, a United States federal law that set new or expanded requirements for all U.S. public company boards, management and public accounting firms, aiming to protect investors from fraudulent financial reporting.
Public Accounting Firms
Professional services organizations that provide accounting, audit, tax, and consulting services to businesses and individuals.
- Understand the effects of public policy on financial markets, with a focus on the Dodd-Frank Act and Sarbanes-Oxley (SOX).
Verified Answer
NM
NATASHA MITCHELLMay 12, 2024
Final Answer :
False
Explanation :
SOX (Sarbanes-Oxley Act) prohibits public accounting firms from providing certain non-audit services (such as bookkeeping, financial systems design and implementation, appraisal and valuation services, actuarial services, internal audit outsourcing services, and management functions or human resources) to their audit clients, but it does not prohibit them from providing tax services.
Learning Objectives
- Understand the effects of public policy on financial markets, with a focus on the Dodd-Frank Act and Sarbanes-Oxley (SOX).