The US Securities and Exchange Commission thinks it can do what the audit regulator, the Public Company Accounting and Oversight Board (PCAOB) could not —require companies and their auditors to disclose the tenure of their client relationship, the Financial Times reported on Sunday. A London based reporter credits Joseph Carcello, an accounting professor at the University of Tennessee and a member of the SEC’s investor advisory committee, for the tip.
Investors scrutiny of auditor independence has increased after the financial crisis, especially in the U.K and Ireland where leaders of the big four accounting firms (PwC, Deloitte, Ernst & Young and KPMG) appeared before legislators to answer how they either failed to spot or failed to highlight huge problems in the banking sector. No such hearing has ever been held in the U.S.
Five federal agencies released answers to the most frequently asked questions that financial services companies have when implementing one of the most the highly contentious portions of the Dodd-Frank Reform Act, the Volcker Rule.
The original article can be found at www.marketwatch.com