Non-Auditing Service And CPA Independence-Consideration Of Sarbanes-Oxley Act

Businesses need more and more non-auditing services at the time that the internationalization trend continues to prosper. Nevertheless, CPA's independence has been widely questioned at the same time. Scholars have studied and discussed extensively on CPA's independence as well as CPA's non-auditing services before Enron Incident occurred. All scholars have studied various cases regarding the factors that might affect CPA's independence, such as consultation, non-auditing fees, auditing fees, and CPA reports. However, no evidence was found as to how much influence has been imposed on CPA's independence so far. Then, CPA's credibility was widely questioned after Enron Incident took place and Taiwan's PROCOMP Informatics Ltd., Summit Technology, and Infordisc Corp. were found in scandals. Consequently, CPAs' reputations were completely ruined. In light of the increasing number of CPA scandals, United States government has promulgated Sarbanes-Oxley Act so as to monitor CPAs, attorneys, securities analysts, and credit rating agencies closely, thereby enhancing protection for investors. The Act outlines independence as a basic requirement for CPA. Taiwan has just as many financial scandals as the United States does. Therefore, Taiwan government has incorporated Sarbanes-Oxley Act into its laws so as to regulate CPA's independence. Taiwan's CPA firms have also initiated rules regarding their independence so as to protect their images andrecover the general public's confidence. The purposes of this research are as follows:1. Discuss the influence of independence under all audit and non-audit service provided by CPAs.2. Discuss the enhancement of CPA independence under ROC Taiwan Regulatory and Sarbanes-Oxley Act.3. Discuss the influence of CPA firms in Taiwan under ROC Taiwan Regulatory and Sarbanes-Oxley Act.The conclusions are as follows:1. No correlation between CPA independence and non-audit services.2. The key enhancement of CPA independence is the rolling door regulation.3. Many countries recognize the effectiveness of CPA rotated system.