Which statement best describes the SEC rules relating to bookkeeping services?

a. Bookkeeping services are permitted, as long as the individuals performing these services are not

the same individuals performing the audit.

b. Bookkeeping services are permitted if the fees from these services are insignificant relative to the

audit fees.

c. Bookkeeping services are permitted if the client agrees in writing to accept responsibility for the

adequacy of these services.

d. An accountant generally cannot provide bookkeeping services to an SEC audit client.

Question

Irvin Burgess

Business

23 September, 16:07

Which statement best describes the SEC rules relating to bookkeeping services?

a. Bookkeeping services are permitted, as long as the individuals performing these services are not

the same individuals performing the audit.

b. Bookkeeping services are permitted if the fees from these services are insignificant relative to the

audit fees.

c. Bookkeeping services are permitted if the client agrees in writing to accept responsibility for the

adequacy of these services.

d. An accountant generally cannot provide bookkeeping services to an SEC audit client.

+3

Answers (2)

Know the Answer?

Zachariah Dunlap · Answer 1

D) An accountant generally cannot provide bookkeeping services to an SEC audit client.

Explanation:

Bookkeeping services refers to basically recording the financial transactions of a business, storing the business's accounting "books" (computer records) and retrieving them upon the business's request.

Therefore if an accountant is going to participate in the preparation of the financial statements of a business, then he cannot audit himself.

Sparky · Answer 2

An accountant generally cannot provide bookkeeping services to an SEC audit client.