I support nothing less than an outright ban on non-audit services for audit clients

I support nothing less than an outright ban on non-audit services for audit clients

According to the findings of the O’Malley panel, that’s a situation that already exists for a majority of publicly-held firms.

And that’s not to say that firms shouldn’t have consulting practices but just that their consulting practices should be independent of their audit clients. Rather than trying to embroider a set of rules that permit the erosion of the appearance of independence, I would prefer that the Commission start with a clean sheet of paper.

As long as we construct exceptions for non-auditservices provided to audit clients, the appearance of independence will be impaired. That concludes my opening remarks. I’ll be glad to take your questions.

COMMISSIONER UNGER: The issue of disclosure came up this morning, and what impact, if any, disclosure could have on, sort of, remedying the appearance issue?

In other words, if accountants were required to disclose the amount of revenues they obtained from consulting, as opposed to auditing, could that help address the appearance issue? (más…)