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Audit and consulting services

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Why do you think the SEC requires companies to disclose fees paid to independent accounting firms for audit and consulting services? What must be disclosed? 100 words please.

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Solution Summary

This solution explains why the SEC requires accounting firms to disclose the fees paid by client companies for auditing and consulting services, and also explains the extent of the information that must be disclosed under federal law.

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This is required by both the SEC and this same area is also watched in terms of oversight by the PCAOB because the PCAOB is the oversight board for the Sarbanes-Oxley Act. The extent of the involvement must be disclosed along with the fees paid to the accounting firms for audit and consulting services. The reason ...

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