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Pullen LLP is an accounting firm that performs audits of public companies. It also has a consulting and tax advice wing that is organized as
Pullen LLP is an accounting firm that performs audits of public companies. It also has a consulting and tax advice wing that is organized as Pullen Days Inc. The employees of both firms are the same set of accountants. One of the firms major audit clients, Becks LLC has asked the firm to also provide tax advice. Which of the following statements is true?Under the SarbanesOxley Act of SOX accountants cannot provide both audit and tax services to the same client.Audit firms can provide consulting services, including tax advice, to clients and can base employee compensation on the sales of consulting services to clients.Audit firms can provide consulting services, including tax advice to clients, but cannot base their employees compensation on sales of consulting services to clients.Audit firms can provide consulting services, including tax advice to clients, provided that the board of directors signs off on any potential conflict of interest
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