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.
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
Six new partners have been revealed by top ten firm Mazars