The Sarbanes-Oxley Act includes several significant reforms that affect the auditing profession,but it did not reduce an audit firm's ability to provide non-audit services to its audit clients.

Question

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Prior to the Sarbanes-Oxley Act (SOX),independent auditors often provided nonaudit services,such as installing computer systems,for their audit clients.To reduce the likelihood of conflicts of interest,SOX prohibits all registered public accounting firms from providing audit clients,contemporaneously with the audit,certain nonaudit services,including internal audit outsourcing,financial-information-system design and implementation services,and expert services.

The Sarbanes-Oxley Act Includes Several Significant Reforms That Affect the Auditing