How does SOX affect the provision of attest and advisory services?
Prior to the passage of SOX, accounting firms could provide advisory services concurrently to audit (attest function) clients. SOX legislation, however, greatly restricts the types of non-audit services that auditors may render audit clients. It is now unlawful for a registered public accounting firm that is currently providing attest services for a client to provide the following services: 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, or any other service that the Board determines, by regulation, is impermissible.
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Awareness tends to be greatest when firms have highly similar resources and compete in multiple markets.
Answer the following statement true (T) or false (F)
The following information is available for Prudhoe Company: Disbursements for purchases ........................... $290,000 Increase in trade accounts payable .................... 25,000 Decrease in merchandise inventory ..................... 10,000 Cost of goods sold was
a. $325,000. b. $305,000. c. $275,000. d. $255,000.
What characteristic of organisational activity is required for that activity to be effectively offshored:
a. labour-intensive b. unimportant c. location neutral d. expensive
Eintz Corp hired Jose to bribe a foreign government official into awarding a $3 million contract to Eintz. Eintz gave Jose $10,000 in cash to make the bribe payment and $2000 for Jose's efforts. Instead of paying the bribe, Jose pocketed all of the money. If Eintz sues Jose, Eintz will:
a. be able to recover the $12,000. b. be able to recover the $3 million lost on the contract. c. be able to recover the $2,000 but not the $10,000. d. not be able to recover the $12,000.