Chapter 4: Problems 4-22 (ag)

The following situations involve the provision of nonaudit services. Indicate whether providing the service is a violation of AICPA rules or SEC rules including SarbanesOxley requirements on independence. Explain your answer as necessary.

a. Providing advice to a private company client on accounting for a merger with another private company.

b. Providing bookkeeping services to a private company. The source documents were prepared and authorized by the client.

c. Providing internal audit services to a public company that is not an audit client.

d. Implementing a financial information system designed by management for a private company.

e. Recommending a tax shelter to a client that is publicly held. The services were preapproved by the audit committee.

f. Providing bookkeeping services to a public company. The services were preapproved by the audit committee of the company.

g. Providing internal audit services to a public company audit client with the preapproval of the audit committee.