SEC Takes Accounting Firms to the Mat
Auditing, once the bread and butter of accountants, has dropped from 70 percent to 30 percent of accounting firm revenues, according to an SEC spokesperson. This does not reflect a reduction in auditing services provided, but an increase in consulting services provided by the firms.
Representatives from the Big Five, who held an anonymous press conference yesterday while girding for today's announcement, claim the new SEC rule is unwarranted and assert that there is no justification for imposing such a restriction.
The proposal, which will be posted on the SEC web site as soon as it is finalized, will be subjected to a 75-day comment period which will include public hearings.