Has The Pre-Sox Era Returned?

Author:Mr Ernest Badway
Profession:Fox Rothschild LLP

Auditors engaging in non-audit consulting? A major accounting firm pushing for more consulting work? Recently, the SEC's chief accountant indicated that there were concerns at the SEC regarding auditor independence as a result of this push for non-auditing work from accounting firms.

In particular, the concern related to auditing firms boosting their non-audit consulting business. This is particularly troubling given this was a issue was one of the impetuses giving rise to the enactment of the Sarbanes-Oxley Act. This SEC concern relates to there being developed a conflict of interest. Such a conflict may result in a...

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