Case a couple of: Kpmg: How Many Businesses? Essay

Specialist standards do not allow for a business auditors to also provide duty services and still retain their independence. The SEC plus the PCAOB have got put limitations on the nonaudit services which a company's auditors can provide. These restrictions seriously limit you can actually auditors to the extent that if a firm provides auditing services for a company they can really give any other types of solutions. This constraint was put into place in order to take care of the independence of auditors as well as the companies that they audit. If an accounting organization was allowed to provide auditing services and also tax providers to a company, the self-reliance, in such a case, of the firm would not be managed because the company would be partly auditing several of its own work. The procedures of the Sarbanes-Oxley Act have limited a public business choice of auditors by placing a strong focus on maintaining freedom between the auditor and the customer. Before the Sarbanes-Oxley Act, accounting firms may provide auditing services along with other services which includes consulting solutions to businesses and still, in the eyes in the law, maintain independence. Following some big scandals turned out in the early on 2000's, including the Enron scandal, there was a powerful push for further restrictions within the nonaudit companies that auditors could give to customers. The Sarbanes-Oxley Act put into place restrictions upon these providers and came up with the PCAOB which will provided oversight on auditing services and has the work of making certain independence is maintained in all cases. This can be a change from your past where it was the auditors responsibility to make sure that independence is managed between themselves and the client. There are some positive aspects to allowing auditors to supply nonaudit companies to their review clients. A single advantage will be that it helps to ensure profound results for your customer to acquire multiple services in one accounting company instead of having many different services provided by...

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