Question

18) Sarbanes-Oxley and the Securities and Exchange Commission restrict auditors from providing 18) many consulting services to their publicly traded audit clients. Which of the following is true for auditors of publicly traded companies? I. They are restricted from providing consulting services to privately held companies. Il. There is no restriction on providing consulting services to non-audit clients A) I only B) Il only C) I and II D) Neither I nor 19) Which of the following is an accurate statement regarding principles and auditing standards? A) The principles underlying an audit state that the only objective of an audit is to provide financial statement users with an opinion. B) The principles underlying an audit give specific guidance to an auditor when a problem arises in an audit. C) The SAS number identifies the order in which it was issued in relation to other SASs D) All auditing standards issued by the PCA OB are given two classification numbers 20) With respect to the SEC 20) A) the SEC requirements of greatest interest to CPAs are set forth in the their enforcement regulations B) the SEC has the power to establish rules for all CPAs. C) the SEC is the sole agency responsible for setting generally accepted accounting principles. D) the attitude of the SEC is generally considered in any major change proposed by the FASB 21) Which of the following is true with regards to the various auditing standards? 21) A) Statements on Auditing Standards (SASs) are issued by the PCAOB B) The ASB Clarity Project was intended to make the U.S. auditing standards easier to read understand, and apply C) The ASB red rafted existing AICPA auditing standards to align them with respective ISAs. D) Both B and C are correct.

Answer 1

Answer:- 18

B(II only)

Sarbanes-Oxleyand the securities and exchange commission restrict auditors from providing many consulting services to their publically traded audit clients.the overall purpose of the securities and exchange commission is to assist in providing investors with reliable information upon which to make investment decisions.

The second statement is true.There is no restrictions on providing consulting services to non-adult clients.