SOX: Title 2

Question 1

Under § 201 what are the prohibited activities?

Answer 1

1. Bookeeping
2. Fin. Info. Sytems design & implementation
3. Apprasial Services, Fairness Opinons, in kind reports
4. actuarial Services
5. Internal audit outsourcing services
6. Mgmt. functions or human resources
7. Broker dealer, investment srvcs, and Investement adviser
8. legal srvcs & expert srvcs
9. anyhtin else the board deems as unpermissable

Question 2

Why? Any exceptions?- DE MINIMUS EXCEPTION.

Answer 2

(A) is waived with respect to
the provision of non-audit services for an issuer, if—
‘‘(i) the aggregate amount of all such non-audit
services provided to the issuer constitutes not more
than 5 percent of the total amount of revenues paid
by the issuer to its auditor during the fiscal year
in which the nonaudit services are provided;

‘‘(ii) such services were not recognized by the issuer
at the time of the engagement to be non-audit services;
and
‘‘
(iii) such services are promptly brought to the
attention of the audit committee of the issuer

Question 3

Conflict of Interest

Answer 3

—It shall be unlawful for a registered public accounting firm to perform for an issuer any audit service required by this title, if a chief executive officer, controller,
chief financial officer, chief accounting officer, or any person serving in an equivalent position for the issuer, was employed by that registered independent public accounting firm and participated in any capacity in the audit of that issuer during the 1-year period
preceding the date of the initiation of the audit.’’

Question 4

How often do audit partners rotate?

Answer 4

every 5 years

Question 5

Does this include the review partner?

Answer 5

yes