CCEP Certification Practice Exam 2025 – Complete Study Resource

Under the Sarbanes-Oxley Act, the provisions regarding auditor independence are designed to prevent conflicts of interest that could arise from having corporate employees work for the external audit firm close to the time of an audit. This regulation restricts certain key employees and management from being employed by the audit firm during a specified period before the audit.

A Compliance and Ethics Professional typically does not hold a financial reporting or accounting role and is often seen as having a different function within the corporate structure. This role primarily focuses on ensuring that the company adheres to regulatory compliance and ethical standards, rather than on financial reporting processes that could create conflicts when an external audit is conducted.

In contrast, roles such as the CEO, Controller, and Chief Accounting Officer are directly involved in the financial reporting and accounting functions of a company. As such, these positions are more closely scrutinized under Sarbanes-Oxley regarding their relationships with the external audit team, particularly to avoid any invalidation of the audit process or questions of impartiality. Thus, the designation of Compliance and Ethics Professional as being able to work for the audit firm is consistent with the intent of the Sarbanes-Oxley Act, which protects the integrity of financial reporting.