<P> The Companies Act 1989 also has provisions to prevent employees of firms from becoming auditors of their own companies and subsequently either any subsidiary of their employers or parent companies (section 27 refers). This is intended to prevent the appointment of an auditor with conflict of interest with respect to a company . </P> <P> It is also a requirement that any person barred from acting as an auditor should refuse any such offers of appointment and resign immediately if for whatever reason they become ineligible during their appointment . If for whatever reason an ineligible person carries out an audit then the Secretary of State (under section 29 of the Companies Act 1989) has the power to require a company to appoint a second auditor and bear the brunt of the cost as a result . However, companies are allowed to recover additional fees from the original ineligible auditor . </P> <P> Further to regulations regarding the appointment of auditors the various Companies Acts also contain rules regarding the rights of auditors . The most fundamental of these regulations is section 389A of the Companies Act 1985 . This section states that auditors have a right of access at all times to accounting related information from companies and further have the right to demand explanations from companies regarding any accounting related enquiry they may have . Section 389A also covers other matters such as making it illegal for employees of a company to make misleading, false or deceptive statements to auditors regarding any accounting related queries they may have . Subsidiaries of British companies also must provide any accounting related information to the auditor of the parent company should they request it although in general it is usually the same auditor who undertakes the audit of both the parent company and its subsidiaries . Section 389A finally goes on to state that companies must take all reasonable steps to obtain accounting related information for auditors from any overseas subsidiaries it may have . Auditors also have the right to communicate directly with shareholders as dictated in section 390 in the Companies Act 1985 . </P> <P> Whilst this legislation prevents directors of companies from limiting the information available to auditors it does not prevent directors from setting tight deadlines for auditors where it may prove difficult to obtain all the necessary information they feel they require for audit . Directors could also attempt to negotiate a fee that would not be enough to cover the costs of a proper audit thereby forcing the auditor to perhaps undercut corners in order to reduce costs . Shareholders are not likely to be sympathetic to auditors in such circumstances either as they may be likely to see auditors as unnecessarily overcharging for their service . </P>

Which of the following types of services can be provided only by cpa firms