For the same client,SEC prohibits a CPA firm from providing which of the following services?
A)tax and external audit services
B)internal and external audit services.
C)management letter and audit services.
D)internal control and financial statement audits.

Question

Quizplus · Accepted Answer

The SEC prohibits a CPA firm from providing both internal and external audit services to a client, as this creates a conflict of interest. Internal audit services involve helping a company improve its internal controls and financial reporting processes, while external audit services involve providing an independent opinion on the accuracy of the company's financial statements. Providing both services to the same client can create a situation where the CPA firm may overlook or ignore issues with the company's financial reporting in order to maintain the client relationship.

For the Same Client,SEC Prohibits a CPA Firm from Providing