![]() ![]() The point at which accounting assistance or advice creates an independence problem is not clear-cut rather, it is a matter of professional judgment. Historically, the SEC has elaborated only slightly on this prohibition, saying that “an accounting firm cannot be deemed independent with regard to auditing financial statements of a client if it has participated closely, either manually or through its computer services, in … preparation of the financial statements”. Underlying the positions historically taken by the SEC and its staff is Rule 2-01(c)(4)(i)(B) of its Regulation S-X, which prohibits an auditor of a client that is subject to the SEC independence rules from preparing, or substantially assisting in the preparation of, the audit client’s financial statements. ![]()
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