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4-21 (OBJECTIVES 4-5, 4-6) The following situations involve the provision of nonaudit services. Indicate whether providing the service is a violation of AICPA rules
4-21 (OBJECTIVES 4-5, 4-6) The following situations involve the provision of nonaudit services. Indicate whether providing the service is a violation of AICPA rules or SEC rules including Sarbanes-Oxley requirements on independence. Explain your answer as necessary. a. Providing bookkeeping services to a public company. The services were preapproved by the audit committee of the company. b. Providing internal audit services to a public company audit client with the preap- proval of the audit committee. c. Providing advice to a private company client on accounting for a merger with another private company. d. Providing bookkeeping services to a private company. The source documents were prepared and authorized by the client. e. Providing internal audit services to a public company that is not an audit client. f. Implementing a financial information system designed by management for a private company. g. Recommending a tax shelter to a client that is publicly held. The services were preap- proved by the audit committee.
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