© D.L. Crumbley
Tax Services Not Defined
PCAOB will not define tax services, but will be inspecting them.
Representing an audit client in court could impair independence.
PCAOB “will focus on the profession’s role in both structuring and signing off on abusive tax shelter designed to make their clients’ financial statements look better.”
PCAOB’s annual inspections will examine how accounting companies audit and structure “questionable, tax-orientated transactions.”
Source: Sheryl Stratton, “Accounting Board Won’t Define Tax Services, But Will Inspect Them,” Tax Notes, October 20, 2003, p. 330; C. Bryan – Low, “Accounting Board to Look at Abuses in Tax Shelters,” Wall Street Journal., October 22, 2003, p. A-2.