Which nonaudit services is permitted by the sec

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Problem 1: Which of the following nonaudit services is permitted by the SEC without being seen as impairing a CPA firm's independence when also serving as the auditor of a public company?

a. Some specific tax services.
b. Information system design and implementation services.
c. Human resource services (such as executive search).
d. Internal audit services.
e. Bookkeeping and general ledger maintenance.

Problem 2: An auditor is required to communicate with those charged with governance about all of the following matters, except for

a. Opportunities to improve the entity's business processes to be more profitable.
b. Material adjusting journal entries proposed by the auditors.
c. Disagreements the auditor had with management over accounting issues.
d. Instances where management requested a second opinion from another CPA firm.
e. Fraud that is not material but which involves senior management.

Reference no: EM132829711

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