Question

Why did the SEC ban certain non-audit services from being offered to SEC-registrant audit clients even though it has been possible to effectively manage such conflict of interest situations?

Answer 1

Answer:-

SEC :-

• The Securities and Exchange Commission ("SEC" or "Commission") is proposing revisions to its current prerequisites in regards to evaluate autonomy to upgrade the freedom of bookkeepers that review and audit money related explanations and get ready authentication reports recorded with the Commission.
• The proposed guidelines perceive the basic pretended by review panels in the money related detailing process and the interesting position of review boards of trustees in guaranteeing reviewer freedom.
• As coordinated by Section 208(a) of the Sarbanes-Oxley Act of 2002.

Looked with the powerlessness of one of the biggest and most regarded association's (Arthur Andersen) failure to oppose the draw of benefit and secure general society intrigue, and the fact that such clashes were normal practice, SOX required the SEC to kill the most dangerous clashing administrations. The contributing open and government onlookers would not have been happy with less.