Date of Defense

Fall 12-7-2001

Department

Accountancy

First Advisor

Sheldon Langsam, Accountancy

Second Advisor

Jerry Kreuze, Accountancy

Third Advisor

Miriam Coleman, Business Information Systems

Keywords

finance, Certified Public Accountants

Abstract

The Securities and Exchange Commission (SEC), under the Securities Exchange Act of 1934, has the authority to set financial and reporting standards for publicly held companies. They normally use a "hands-off" approach and allow regulatory bodies such as the American Institute of Certified Public Accountants (AICPA) and the Financial Accounting Standards Board (FASB) to monitor services. Recently the SEC has become concerned that these bodies are not fulfilling the needs of the public interest as it pertains to independence. Providing consulting services to audit clients is a conflict of interest and the SEC has begun to move toward regulating these issues which may affect the auditor's independence. CPAs, however, believe that their familiarity with the inner operations of an audit client puts them in the best position to advise a company about business decisions. Should auditing firms be allowed to provide consulting services to their publicly held clients?

Access Setting

Honors Thesis-Campus Only

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