Question: Allowable Nonaudit Services. (LO11-2) Under GAGAS, some nonaudit services create threats to independence and are prohibited from being performed by the auditor providing audit services.

Allowable Nonaudit Services. (LO11-2) Under GAGAS, some nonaudit services create threats to independence and are prohibited from being performed by the auditor providing audit services. _____ 1. Preparing accounting records and financial statements. _____ 2. Reporting to those charged with governance on behalf of management. _____ 3. Educating the audited entity on matters within the technical expertise of the auditor. _____ 4. Serving as a voting member of an audited entity's board of directors. _____ 5. Setting policies for the audited entity. _____ 6. Researching the audited entity's technical questions on relevant tax laws. _____ 7. Information technology services. _____ 8. Having custody of an audited entity's assets. Required For each of the nonaudit services, indicate whether the service is prohibited (P), acceptable (A), or could potentially impair auditor independence (C)

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