US chief auditor to testify against Big Four
The man responsible for writing new auditing standards in the US will be allowed to testify against three of the Big Four facing private lawsuits, but only if he is subpoenaed to do so.
Link: SEC approves watchdog chief
Before his appointed to the post in April this year, Douglas Carmichael, an audit standard setter with the American Institute of Certified Public Accountants, was a widely sought expert witness in audit cases.
He had already agreed to testify on behalf of plaintiffs against KPMG, Ernst & Young and Deloitte & Touch in five different cases, the New York Times reported.
Following consultation with an ethics lawyer, the SEC ruled that Carmichael could testify as an expert witness in these cases, so long as he received a subpoena.
Charles Niemeier, acting chairman of the Public Company Accounting and Oversight Board, said: ‘It appears that some people out there think it is important that he actually receives a subpoena.’