Senate Asks Levitt for Smoking Gun

Arthur Levitt, SEC Chairman, presented his case for new guidelines for auditor independence to the U.S. Senate Banking Committee's securities subcommittee yesterday and was met with a request to present his "smoking gun" proof of why such guidelines are necessary.

Not willing to publicly disclose the names of firms, Levitt requested a private audience with members of the Senate and has agreed to brief lawmakers confidentially on his specific reasons pushing for auditor independence in the form of a limitation of the scope of services that can be performed by members of the auditing profession.

In his prepared testimony, Levitt maintained that only a small number of accounting firms, those that audit SEC clients, would be affected by the guidelines.

All of the Big Five firms have spoken out publicly against the proposed guidelines and many others have joined in the SEC's public hearings to express their views. PricewaterhouseCoopers and Ernst & Young have indicated their willingness to work toward a compromise on the auditor independence guidelines, whereas the other Big Five firms have remained adamantly opposed to the proposed rules.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.