Question
an audit manager is preparing a proposal for a publicly held company in the chip manufacturing industry. The new/potential client is growing rapidly with potentially
an audit manager is preparing a proposal for a publicly held company in the chip manufacturing industry. The new/potential client is growing rapidly with potentially new funding from grants and they are introducing many new products yet they still have a manual accounting system. The company also has never undertaken any tax planning activities and feels that it pays a higher percentage of its income in taxes than its competitors. Additionally, it is concerned that its monitoring activities are inadequate because it does not have an internal audit department. Dan knows that the SEC has rules regarding auditor independence. Provide a response and discuss with your classmates the following: 1.) What non-audit services can Dan include in his proposal that does not violate the SEC's independence rules?
2.) If the company was not publicly held, what non-audit services could you include in addition to the ones described in your response to question 1, and why? What conditions have to be met in order to provide any additional services?
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