SEC Calls Andersen Case 'Smoking Gun'

In a speech this week to the Center For Professional Education, Inc., acting SEC chairman, Laura Unger voiced renewed concern over auditor independence issues, citing the recent Andersen/Waste Management fracas as a prime example of abuse.

"This is one very significant case that we can point to," said Ms. Unger in her speech Monday, referring to recent allegations that auditor independence may indeed be compromised when accounting firms perform non-audit services for audit clients. "The problem may be larger than we originally thought," Ms. Unger said.

Concern had surfaced a few weeks ago when the results of an SEC analysis of consulting fees charged to audit clients showed higher-than-expected payments for non-audit services. The SEC learned that the typical company pays 73 percent of its fees to auditors for non-audit work.


Already a member? log in here.

Editor's Choice

Upcoming CPE Webinars

Dec 3The materials discuss the concepts and principles in the AICPA’s new special purpose framework.
Dec 8Kristen Rampe will cover how to diffuse the tension in challenging situations in this one-hour webinar.
Dec 9A key component to improving your firm’s workflow efficiency while enhancing your profitability at the same time is how you leverage emerging technologies.
Dec 16Kristen Rampe will give tips on how to bring confidence into the room and build a valuable network.