Britain slams SEC auditor rules
The Department for Trade and Industry has slammed the US Securities and Exchange Commission, over its handling of rules on auditor independence.
The Sarbanes-Oxley Act stipulates that the lead partner on a company audit must be changed every five years. But proposed new rules say that all partners involved in the audit must receive the same treatment.
The DTI has said this will damage audit quality. ‘If you go down the American track, you risk the quality of audits by removing such things as knowledge and expertise,’ it said.
Peter Wyman, president of the ICAEW, will today hold talks with SEC officials over the subject. The rules must be finalised by January 26.