PracticeAccounting FirmsUS firms hit by SEC enforcement warning

US firms hit by SEC enforcement warning

The Securities & Exchange Commission has issued a stark warning to the accountancy profession saying that entire firms will face lawsuits unless they co-operate more with investigations.

Link: Ex-chief accountant takes rap for SEC scandal

Steven Cutler, director of enforcement at the SEC, said the regulator had only pursued individual auditors in the past, but is now arguing for entire firms to face the music.

‘It is time to adopt a new enforcement model – one that holds an accounting firm responsible for the actions of its partners,’ he said.

The words came in a speech to members of the audit profession and come soon after the nomination of Wall Street veteran, William Donaldson, to take over from chairman Harvey Pitt. It signals a tough new stance for the regulator.

Meanwhile, the White House announced yesterday that Stephen Friedman, former chairman of Goldman Sachs, will become chief economic advisor to President Bush.

Related Articles

Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

1d Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

3w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin