What Real Diversification Means

Added: 2026-05-29

[00:00:00]Interestingly, before SOX, some of the provisions that are in SOX are things like, from an audit perspective, you don't want to be in a position where you are auditing your own work. Right? And so, pre-SOX, I know from personal experience, the the firm I was working with would perform the audit, but I was on the tax team, and then the tax team would come in, and oftentimes the client didn't have the internal resources or the knowledge to prepare their own income tax provision.

[00:00:30]And so, we as the tax team came in and and actually prepared the provision for for the company. And these could be either private companies or public companies. And then, the audit team would come in, and from what I saw, to a large extent, it was like, "Well, we already have the the professionals that are familiar with this, the the tax team. They've already prepared it, so we're just going to incorporate those numbers into the financial statements."

[00:00:59]So, I I definitely saw that going on, but then once once SOX actually hit, there was a a hard stop to that type of activity.