Get Office Of Communications August 8, 2007 Frequently Asked Questions - #3 1 Employment-Based

Non-audit services are any services other than statutory audit services and typically comprise: • Tax services – including tax compliance, tax consulting and tax planning; • Information technology services – including IT and other control reviews; • Corporate finance related services – including due diligence and ...

Audit committees should be aware that certain financial relationships between the company and the independent auditor are prohibited. These include creditor/ debtor relationships, banking, broker- dealer, futures commission merchant accounts, insurance products and interests in investment companies.

The conditionally prohibited services covered in the SEC rule are as follows: Bookkeeping or other services related to the accounting records or financial statements of the audit client. Financial information systems design and implementation.

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 Board43 determines, by regulation, is impermissible.

The Sarbanes-Oxley Act of 2002 (SOA) requires a one-year cooling-off period before publicly held companies may hire their auditor's former employees or owners for key positions.

(i) direct financial interest or materially significant indirect financial interest in a client, (ii) loan or guarantee to or from the concerned client, (iii) undue dependence on a client's fees and, hence, concerns about losing the engagement, (iv) close business relationship with an audit client, (v) potential ...

The prohibited non-audit services included corporate secretarial services, payment facilitation, payroll outsourcing, loaned staff, financial information system design or implementation, bookkeeping, internal audit outsourcing, and investment adviser services.

The partner rotation rules provide that an accountant is not independent of an audit client if an audit partner serves as a lead audit or concurring partner for more than five consecutive years or an audit partner as defined in Rule 2-01(f)(7)(ii) provides one or more services defined in Rule 2-01(f)(7)(ii)(C) and (D) ...