New submission for SEC hearings

New submission for SEC hearings

The Panel on Audit Effectiveness - appointed by the US Securities & Exchange Commission to examine audit practices - has issued its final comments on the issue of auditor independence.

Next week the SEC’s public hearings into the revision of auditor independence rules resume in New York following July’s Washington hearing where three of the Big Five accountancy firms voiced their concern over SEC chairman Arthur Levitt’s plans.

The panel’s recommendations can be read by clicking here.

Panel chairman Shaun O’Malley said: ‘Clearly the conduct of audits and the governance of the profession need substantial improvement, particularly as the global economy grows more complex and the demand on our capital markets grows more intense.’

‘While our report demonstrates that both the profession and the quality of itsaudits are fundamentally sound, the recommendations we put forth are vital tospur the needed improvements.

‘Their implementation will require the efforts, support, and cooperation of the profession, the SEC, and all the others to whom the recommendations are addressed,’ he said.

Chairman of the Public Oversight Board, which oversees the US profession, and former Comptroller General of the United States, Charles Bowsher, said: ‘The Panel members and their staff have completed the most thorough examination of the audit process ever undertaken in the long history of the accounting profession.

‘While implementing all the specific recommendations will require tremendous efforts by all of those involved, I’m confident the various stakeholders recognize that they will all ultimately benefit from finding common ground on which to strengthen the profession for the future,’ he said.

SEC hearings: Big Five maintain pressure on SEC

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource