PCAOB to allow firms to provide tax services

The Public Company Accounting Oversight Board is meeting next week to look at a proposed set of restrictions it will place on companies to ensure auditor independence.

It is expected to allow accounting firms to work on services such as filling in tax returns and tax planning for audit clients.

However, the PCAOB is expected to draw a line at work that involved tax avoidance.

Tax is the second biggest source of income for the big accounting firms in the US after audit, reports the Financial Times newspaper.