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
The OCC was acutely aware of potential auditor independence issues with the firms that also audit the banks.
FORBES: GAO Blames Regulators For Faulty Foreclosure Reviews But That's Not The Whole Story
One issue that provoked heated discussion at the Chicago forum was auditor independence.
FORBES: Auditors All Fall Down; PFGBest and MF Global Frauds Reveal Weak Watchdogs
Almost everyone who speaks out in public on the auditor independence issue has a vested interest in not pushing back too hard.
FORBES: Consulting By Auditors: NYU Stern Ross Roundtable Explores Post-Enron Reemergence
Since Broc and I are totally in synch with the universe and saw this coming, we talked about Audit Committees, PCAOB inspections, and auditor independence.
Update: It looks like the SEC has prevented some major GE shareholders with an opportunity to vote on a nonbinding shareholder proposal raising the issues of auditor independence and firm rotation.
That type of financial relationship between an auditor and its audit client - or between an auditor and a vendor to its audit client - is prohibited by auditor independence standards except in limited circumstances.
FORBES: PwC Ensures Oscar? Ballot Integrity In 'Partnership' With Everyone Counts, Inc.
According to AICPA rules for auditor independence, PwC can support software development and implementation for its audit client if that system is not the financial accounting software that produces the books and records the firm will audit.
FORBES: PwC Ensures Oscar? Ballot Integrity In 'Partnership' With Everyone Counts, Inc.
But as the only Big Four firm to not sell its consulting arm after the passage of Sarbanes-Oxley and the introduction of new scope of services restrictions to support more auditor independence, Deloitte is the biggest and strongest of all the firms in technology and systems implementation, in particular.
FORBES: Deloitte and Standard Chartered Bank: In Service To Profit Above All
Auditor General Wales (AGW) Huw Vaughan Thomas has criticised the draft bill as he believes the independence of the auditor general could be constrained by the requirement.
Designing internal controls and accounting strategies, approving journal entries, and giving final signoff on technical accounting treatments is a clear breach of independence for an external auditor.
FORBES: Navistar Sues Deloitte Proving No Statute of Limitations On Idiocy
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