New accounting regulation will affect tax practice
✍ Scribed by Caroline D. Strobel
- Publisher
- John Wiley and Sons
- Year
- 2002
- Tongue
- English
- Weight
- 38 KB
- Volume
- 14
- Category
- Article
- ISSN
- 1044-8136
No coin nor oath required. For personal study only.
✦ Synopsis
The Sarbanes-Oxley Act will affect the way publicly traded companies contract for outside consulting services. Auditors are expressly prohibited from providing valuation and actuarial services for public company audit clients. In addition, all tax services that are performed must be preapproved by the public company's audit committee. Final rules are to be issued by January 26, 2003. It is likely that in the future, accounting firms other than the outside audit firm will need to be engaged to perform many of the needed tax consulting services. Review of the tax returns or actual preparation of the returns will likely continue to be performed by the outside audit firm as part of the audit process.