The landmark accord between the US accountancy regulator, the Securities and Exhange Commission, and the world’s largest accountancy firms follows months of clashes, with the SEC compiling a report outlining over 8,000 violations at PricewaterhouseCoopers, the largest of the five firms.
Firms will disclose violation results to the SEC and to the audit committees of their clients. The programme will kick off on 15 June 2000.
SEC chairman Arthur Levitt said: ‘This is a significant chapter in the ommission’s and the profession’s efforts to reinforce the importance of auditor independence. This serious and comprehensive review will enhance investor confidence and lead to improved quality control systems going forward. I commend the profession for working constructively with the Commission’s staff to develop this vital program.’
In exchange for firms’ participation, the program provides safe harbor from enforcement, except in situations involving the most serious violations, such as when a firm itself or senior persons working on an audit own stock in an audit client.
The reviews aim to examine investments held by partners and managers over a period of at least nine months ending on 31 March 2000 and determine whether individuals or immediate family members held financial interests in audit clients.
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit
In our latest managing partner Q&A looking towards 2017, CVR Global's Richard Toone talks about recruitment, and the potential threat of competition from the legal sector, as key issues for the firm in the coming year
Deloitte to avoid tendering for government contracts over the next six months, to appease Theresa May following consultant's report that painted a less-than-flattering picture of Brexit plans
In our first Q&A looking towards 2017, Menzies senior partner Julie Adams flags up increasing digitisation, aligned with more hands-on consultative services, as the key mix for her practice