Just tell them they cannot sell any of their proliferating non-audit services to audit clients.
Andersen, notoriously, earned more from providing Enron with non-audit services than from the audit.
Since PwC has the largest share of the global audit services market perhaps they have more risk here than even Deloitte.
SEC, pointing to the bill's provisions on non-audit services, audit standard-setting and the greater distance of the board from the accountants.
Many companies even now have only three to choose from, because they buy non-audit services from one of the big four.
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In 2002 the Sarbanes-Oxley act limited what kind of non-audit services an American accounting firm can offer to an audit client.
This is because newish rules, implemented in the wake of the scandals at Enron and other companies, ban auditors from offering a wide range of non-audit services.
According to a source who is an expert in internal audit services to public companies, internal controls are not very effective when executives collude and conceal information.
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In fact, both said, they liked using their audit firm for non-audit services because they were comfortable with them and their auditor knew management and the business best.
FORBES: Consulting By Auditors: NYU Stern Ross Roundtable Explores Post-Enron Reemergence
But the rules have to address two issues: individuals' financial incentives, and those of the firm as a whole, of which the most important may be the non-audit services offered by auditors to their clients.
Overturning Morrison and authorizing extraterritorial private lawsuits likely would harm investors by increasing costs and creating a significantly greater risk of further concentration in the market for audit services, thus potentially leading to decreased competition in a market that is already relatively concentrated.
R. 1827 includes some promising provisions on paying for audit recovery services out of proceeds, gainsharing for financing management improvement, and rewarding employee performance.
That is why Justice Secretary Kenny MacAskill asked for an audit of community services to get a clear picture of where we are in meeting our targets for getting offenders started on - and completing - their punishments.
The committee also called for the Auditor General to be allowed the "unfettered power" to audit the Financial Services Authority's work, given the billions of pounds of taxpayers' money that was now tied up in the banking system.
The changes that will have to occur to bring the audit firms, and their clients, in line may mean not only consolidation of audit firms that can not deliver audit-only services cost effectively and per the standards, but also consolidation of broker-dealers who do not want hire competent accounting and systems professionals in-house or pay for it separately from a firm other than their auditor.
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The independence rules around provision of tax services to audit clients are a little trickier.
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But there are more auditor independence conflicts than just providing prohibited services to audit clients.
FORBES: Consulting By Auditors: NYU Stern Ross Roundtable Explores Post-Enron Reemergence
Consultancies say such concerns are groundless, but critics note that auditors said the same thing when they were pitching consulting services to audit clients.
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Both Comcast and PPG Industries spent more than 10% of total fees to Deloitte on non-audit related and tax services in 2011 and 2010, for example.
FORBES: Consulting By Auditors: NYU Stern Ross Roundtable Explores Post-Enron Reemergence
From there, it is important to conduct a comprehensive cloud audit to see how services are being used within the company and to identify not only potential vulnerabilities but also areas where cloud services are having a positive impact.
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Also reappearing this month is Deloitte, the professional services organization, which specializes in audit, consulting, financial advisory, risk management and tax services.
Autonomy followed the more lax British honor code when choosing which services besides the audit to buy from auditor Deloitte.
FORBES: Consulting By Auditors: NYU Stern Ross Roundtable Explores Post-Enron Reemergence
Of course, if accountants are barred from selling other services to their audit clients, then the cost of audits may well go up.
It said savings would come through renegotiating contracts and supplies such as payroll services and external audit fees and no jobs would be lost.
But probation officers' union Napo called for the two firms to be "disallowed" from delivering services until the audit was complete, and criticised the government's "rush to privatise the probation service".
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In addition, customers for professionals services, including Audit Committees, have no comprehensive or effective way of vetting accounting firm partners assigned to the audit, tax, and key risk and compliance activities at their companies.
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While larger local authorities with bigger budgets may find it easy to adapt to the changes, the committee is concerned that the 9, 800 smaller bodies, including parish councils and internal drainage boards, which have been entitled to low-cost services from the Audit Commission, will struggle to cope.
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So far, the draft reform does not include the key change that critics have long called for: a ban on auditors selling consulting services to their audit clients, which many feel is a conflict of interest that has encouraged accounting firms to relax their vigilance in performing audits.
The worst outcome of the Enron affair, for accounting firms, would be that regulators ban them from selling consulting services to those they audit.
In 2010, KPMG earned approximately 10% of their total fee from GE for tax services not connected to the audit directly or indirectly.
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