CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. SEC Issues Report On Regulation Of Accounting Firms

SEC Issues Report On Regulation Of Accounting Firms

by Leroy Baker, Tax-News.com, New York

06 December 2002


The Securities and Exchange Commission is considering introducing rules which would prohibit accounting firms from providing their audit clients with certain tax services, in a move to improve auditor independence.

Citing a report issued by the US regulator this week, Reuters revealed that the measures were proposed by the SEC in response to the Sarbanes-Oxley Act, passed this summer, which addresses corporate governance issues.

According to the report, the SEC is concerned that as things stand, there is the possibility that an accounting firm which offers tax advice to its clients may conceivably end up auditing its own work, which represents an unacceptable conflict of interest, especially in the current climate.

'Where an accountant provides representation before a tax court the accountant serves as an advocate for his or her client and the accountant's independence would be impaired,' the SEC report explained, continuing: 'Another example would be the formulation of tax strategies (e.g. tax shelters) designed to minimize a company's tax obligations.'


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »