Legal-Ease The Sarbanes-Oxley Act''''s Implications for U.S. Companies in China

Auditor independence In addition to the establishment of an independent institution overseeing public accounting firms, the act enforces auditor's independence. Registered firms are prohibited from performing most non-audit services for the public company they audit. However, certain tax services are not prohibited and the board can, on a case-by-case basis, give permission to a firm to perform otherwise prohibited services. Still, any allowed