sarbanes-oxley help!


Please will somebody help me with this question:

Can auditors in the UK provide audit and non-audit information to the same company?
Are there rules surrounding this?
Does Sarbanes-Oxley specifically cover this?
Many thanks!


Yes, sarbanes oxley does cover this, and there are rules surrounding it. In fact, it is one of the cornerstones of SOX.

In principle, firms are not permitted to provide audit & non-audit services to the same client. For example, a firm could not provide tax services, as the auditors would then be auditing the work of their own firm, and are thus open to bias.

In reality firms do try to bend this rule- particularly as audit is consider to be a loss leader in order to sell clients other services.

So for example, firm ABC auditors will form a separate entity called ABC consulting and then provide services through this arm.

There are lots of complicated rules about separation of teams, data, servers etc for this scenario.

So the short answer to your question is, yes!

Have a look here: [[Sarbanes-Oxley Act]]