Nonaudit services - Code provisions

Question 1

When performing non-audit work members must not…

Answer 1

Have management responsibilities

Question 2

3 General requirements for performing non-audit services must be met…

Answer 2

1 There are no management responsibilities
2 Client will make informed judgement on results
3 Agreement of work should be documented and established in writing

Question 3

If general requirements are met then the member can…

Answer 3

1 Provide recommendations to assist management in performing function and making decisions
2 Attend board meetings as a non-voter
3 Interpret financial statements
4 Advise on potential plan strategies

Question 4

Sarbanes Oxley (SOX) requires that the _________ select auditors

Answer 4

Client audit committee and it must be preapproved