Question

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate:________.a. conflicts of interest.
b. cronyism.
c. reporting transparency.
d. corporate espionage.
e. dual reporting.

Answer 1

Answer:

A. Conflict of interest

Explanation:

Conflict of interest for an organization or company is a situation whereby the organization has competing interest or loyalties become of their duties to provide more than one service for an individual or organization. This is why the act prohibited accounting firms from doing both consulting services and auditing services for the same clients as there'd be a lot of conflict of interest in doing both.

The company may not be able to make a fair decision if they would be affected by it.