Question

According to SEC independence regulations,

A. All audit partners must rotate every 5 years.
B. Preapproval of accountants' services may be in accord with detailed policies and procedures rather than explicit.
C. The issuer must disclose only those fees paid to the accountant for audit work.
D. No partner may sell nonaudit services to the client during the audit.

Answer 1

Answer: Option (b) is correct.

According to Securities and Exchange Commission independence code: Pre-approval of accountants' work may be in reconciliation with comprehensive policies and transaction rather than categorical.

The Commission’s code, principally through Regulations S-X, focuses on the accomplishment of accountants, counting the autonomy condition for auditors that issue audit filed with Commission.